WAAB Trend Indicator Combining ADX and Bollinger Band Width
Summary
WAAB is described as a histogram indicator for assessing the direction and strength of a trend. It combines the width between the upper and lower Bollinger Bands with ADX: the band width is multiplied by ADX to produce the histogram magnitude. The sign of the directional indicators determines color: green when positive directional movement exceeds negative directional movement, and red when the reverse holds. Larger bars are presented as stronger trends.
The configurable inputs are the ADX period, Bollinger Band period, and price series used for the bands. The page provides the calculation concept but no empirical results, entry or exit rules, or guidance for interpreting the indicator across assets and timeframes. It also does not discuss lag, false signals, or how to validate parameter choices. The indicator is therefore a trend visualization component rather than a complete trading system.
Key ideas
- WAAB combines Bollinger Band width with ADX to represent trend strength.
- The histogram color follows whether positive or negative directional movement is larger.
- Larger histogram bars are described as indicating stronger trends.
- Users can configure the ADX period, Bollinger Band period, and applied price.
- The description provides no trading rules or empirical validation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.