Skip to content
All library documents

Using Standard Deviation Dots to Show Moving-Average Trend Strength

Article MQL5 code base
Read the original

Summary

This indicator description explains how a moving average can display trend direction and relative strength through colored dots. It calculates the standard deviation of the ColorXPWMA_Digit indicator and compares that value with two configurable thresholds. Values between the lower and upper thresholds produce a small dot colored for the current trend direction; values above the upper threshold produce a larger dot. No dot represents the weakest level, giving the display three strength categories.

The text provides default threshold settings and notes that the implementation relies on a smoothing class from an external MQL5 library. It refers readers to a separate explanation of the class-based averaging method, but offers no chart evidence, trading rules, or test results here. The signal is therefore a visual trend-strength aid, not a complete strategy. The description also leaves unstated how the indicator responds to changing volatility, what markets or timeframes suit it, and whether the thresholds need calibration.

Key ideas

  • The indicator uses standard deviation thresholds to classify moving-average trend strength.
  • Dot color reflects trend direction, while dot size distinguishes stronger readings.
  • No dot, a small dot, and a large dot represent three strength levels.
  • The implementation depends on a separate smoothing class library.
  • No trading performance or threshold validation is provided.

Tags

Technical indicatorsTrend followingStatistics

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