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Using Standard Deviation to Show EMAVFS Trend Strength

Article MQL5 code base
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Summary

The document describes an enhancement to the EMAVFS indicator that marks trend strength with colored dots on its moving average. The dot color indicates the current trend direction, while the standard deviation of the indicator determines whether a dot appears and how large it is.

The method defines three visual states: no dot for weak strength, a small dot for medium strength, and a larger dot for strong strength. Two configurable thresholds, dK1 and dK2, separate these states: standard deviation between them produces a small dot, while a value above the upper threshold produces a larger one. The text explains the display logic but supplies no evidence of predictive value, trading rules, or performance testing. It should therefore be understood as a visual trend-strength aid rather than a validated signal.

Key ideas

  • The indicator adds a standard-deviation-based strength display to EMAVFS.
  • Dot color represents trend direction, while dot presence and size represent strength.
  • Values between the two thresholds produce a small dot, and values above the upper threshold produce a larger dot.
  • The description provides no backtest or evidence that the visual states predict returns.

Tags

Technical indicatorsStatisticsTrend following

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