Using MA and TEMA Crossings to Build a Colored Trend Histogram

Summary

The indicator combines two simple moving averages with two triple exponential moving averages calculated from different price inputs, including open and close. It presents the resulting movement in a separate histogram window, coloring rising and falling movement differently. Optional colors can mark long and short entry points, while a delta threshold can classify small movements as flat noise.

The description motivates the combination by saying TEMA tracks price movement in greater detail while moving averages help show trend direction. Its proposed signal idea involves crossings between averaged curves based on different price types and periods. The author reports that parameter selection in an expert advisor tester produced unexpectedly successful results, but gives no settings, market, sample period, benchmark, or performance statistics. That anecdote is not enough to establish robustness; the indicator description does not specify a complete entry, exit, or risk-management system.

Key ideas

• The indicator combines two moving averages with two triple exponential moving averages.
• It displays movement in a histogram, using colors to distinguish rising and falling conditions.
• A delta parameter can mark small movements as flat noise.
• Optional colors can identify long and short entry points.
• The reported favorable testing outcome lacks details needed to assess its reliability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.