XMA Trend Signal Classifies Flat, Trending, and Strong-Trend Markets
Summary
XMA_TrendSignal classifies market movement into flat, moderate-trend, and strong-trend states, with separate positive and negative readings to represent direction. Its bars use colors to show both direction and strength. Trend force is measured by the rate of trend change in points, and two adjustable trigger levels set the boundaries between the states.
The document gives example threshold values of 20 for the flat trigger and 60 for the trend trigger. It cautions that settings need to be chosen for each instrument and display timeframe, so the examples should not be treated as universal. The text explains the indicator’s interpretation and configuration, but provides no performance tests or evidence that its classifications predict future prices. It also notes a dependency on an external smoothing library for implementation.
Key ideas
- The indicator labels conditions as flat, moderate trend, or strong trend.
- Positive and negative readings encode movement direction, while color indicates direction and strength.
- Trend strength is based on the rate of trend change measured in points.
- Trigger settings should be calibrated for the instrument and timeframe, and the document provides no predictive validation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.