A 52-Week Range and ATR Supertrend for Trend Changes

Summary

This indicator modifies Supertrend by using the midpoint of the highest high and lowest low over a 52-week lookback as its price reference. It calculates Average True Range over the same period and places upper and lower bands a multiple of ATR from that midpoint. The example sets the lookback to 260 bars and the ATR multiplier to 5.

The direction changes when price breaks the prior upper or lower band. In an uptrend, the lower band is kept from falling; in a downtrend, the upper band is kept from rising. The selected band becomes the plotted Supertrend line, with the bands reset when direction reverses. The document describes the curve as potentially useful for spotting the start of a new trend, but provides no chart, performance test, entry or exit rules, or evidence that the modification improves on standard Supertrend. Results will depend on the instrument, data frequency, and parameter choices.

Key ideas

• The indicator centers its bands on the midpoint of the rolling 52-week high-low range.
• It uses ATR over the same lookback to set the distance of the upper and lower bands.
• Price crossing a prior band changes the trend state.
• The active band is constrained to avoid moving against the current trend.
• The document suggests trend-change use but supplies no performance evaluation.

Tags

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