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Trend Identificator > Trend Analysis Index

Article/Author: "Filtering Trades With A Moving Average Slope", Adam White,S&C Magazine, August 1992

Download: IndicatorTAI.ela

File Includes:

Indicator - Trend Analysis Index
Function - TAI

Category: Indicator > Trend Identificator

Description:

In essence, it is simply the standard deviation of the last x bars of a y-bar moving average. Thus, the TAI is a simple trend indicator—when prices trend with authority, the slope of the moving average increases, and when prices meander in a trendless range, the slope of the moving average decreases.

Usage:

The characteristics and uses of this simple indicator are similar to the far more complex average directional index (ADX).




Inputs:

Price - data type to analyze
AvgLen - number of bars to calculate MA
TaiLen - number of bars to calculate TAI

EasyLanguage Code:
INPUT: PRICE(CLOSE),AVGLEN(28),TAILEN(5);

PLOT1(IFF(CURRENTBAR > AVGLEN, TAI(PRICE, AVGLEN, TAILEN), 0),"PLOT1");