A Bollinger Breakout Follow Line with an Optional ATR Offset
Summary
The FollowLine is a trend-following indicator that changes direction when a closing price crosses beyond an upper or lower Bollinger band. After an upside trigger, it tracks a line based on the bar low; after a downside trigger, it uses the bar high. In each direction, the line is constrained so it does not move against the active trend. The indicator’s color reflects whether its line is rising or falling.
An optional ATR adjustment offsets the line farther from the bar extreme, using average true range as a buffer. The document gives example settings and implementation logic, but provides no market tests, trading rules for entries or exits, or evidence of profitability. Its triggers can lag because they rely on closes outside the bands, and the description does not explain how the indicator handles periods when price remains inside the bands or how its state initializes. Treat it as a charting tool whose behavior and parameters require validation for a particular instrument and timeframe.
Key ideas
- A close above or below a Bollinger band activates the corresponding directional signal.
- The line follows bar lows in an up move and bar highs in a down move.
- A one-way constraint prevents the line from moving against the current direction.
- An optional ATR offset places the line farther from the bar extremes.
- The document provides indicator logic but no evidence that it produces profitable trades.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.