Using Stridsman Volatility Quality to Classify Trend Direction

Summary

This indicator description presents a version of Thomas Stridsman’s Volatility Quality measure and distinguishes it from commonly used variations. The display includes fast and slow averages, a Volatility Quality line, and a shaded zone between that line and the fast average. Line and zone colors are intended to help visualize trend conditions.

The stated primary trend rule compares Volatility Quality with the slow average: a value above it indicates an uptrend, while a value below it indicates a downtrend. Changes in the Volatility Quality line’s color can be read as shorter-term shifts within that broader direction. The author cautions that the zone fill color and slope color may differ, so they should not be treated as identical signals. No calculation details, parameter settings, testing, or performance evidence are provided.

Key ideas

• The display combines fast and slow averages with a Volatility Quality line and shaded zone.
• The slow average is the primary reference for classifying the trend direction.
• Volatility Quality above the slow average indicates an uptrend, while a lower value indicates a downtrend.
• Line color may signal shorter-term changes, and it can differ from the zone fill color.
• The description gives no formula, parameter guidance, or empirical validation.

Tags

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