Weighted Multi-Period Trend Score from Price Direction

Summary

The Trend Checker Graph turns comparisons between the current selected price and its value at up to eight lookback periods into a single score ranging from negative to positive. A rising comparison contributes a positive amount and a falling comparison a negative amount; the magnitude is weighted by the lookback length. The author interprets positive readings as favoring long trades and negative readings as favoring short trades, with a zero reference line for context.

Users can choose the price input from several OHLC-derived price types, tailor lookbacks to chart timeframe, and disable periods by setting them to zero. Examples map hourly bars to intraday, daily, and weekly horizons, and daily bars to longer calendar horizons. The document explains the indicator’s construction but supplies no performance tests or trading rules for entries, exits, or risk. Because longer periods receive greater weight, parameter choices can strongly shape the reading; it is a directional summary, not evidence that a position will be profitable.

Key ideas

• The indicator compares the selected current price with prices at as many as eight lookback periods.
• Each comparison contributes positively or negatively according to whether price rose or fell, with longer periods weighted more heavily.
• The resulting score is centered on zero, with positive and negative values interpreted as directional preferences.
• Lookbacks and price inputs can be adapted to the chart timeframe, and unused periods can be disabled.
• The document gives no backtest, entry or exit rules, or risk-management method.

Tags

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