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Using Standard Deviation to Mark AML Trend Strength

Article MQL5 code base
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Summary

This indicator adds a trend-strength cue to AML using a standard deviation calculation. When the AML indicator’s standard deviation exceeds a configurable threshold, the indicator places a colored dot on its moving average. The dot color reflects the current trend direction, combining a volatility-related condition with directional information.

The description supplies a default threshold coefficient of 2.0 and refers to an illustration, but offers no formula details beyond the standard deviation rule, no trading rules, and no performance evidence. It does not explain the indicator’s lookback settings, how the coefficient should be calibrated, or whether the dots are stable in real time. Traders would need to assess signal timing and false positives across instruments and market regimes before using the cue as a standalone input.

Key ideas

  • The indicator evaluates standard deviation in the AML series against a configurable coefficient.
  • A colored dot appears on the moving average when the standard deviation exceeds that threshold.
  • The dot color indicates the prevailing trend direction.
  • The description does not provide performance testing or enough calculation details to reproduce the full indicator.

Tags

Technical indicatorsVolatilityTrend following

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