A Moving Average and ATR Channel Indicator
Summary
KC_Cloud is a price-channel indicator built from a moving average and Average True Range. Its inputs let the user choose a price calculation mode and smoothing method, set the smoothing depth and method-specific parameter, and configure the ATR period, ATR multiplier, and horizontal shift. The listed defaults use high-low prices, a simple moving average, an ATR period of 13, and a multiplier of 1.5.
Conceptually, the average supplies a smoothed reference and the ATR factor sets the channel's volatility-based width. The source credits a smoothing-algorithm library for its averaging classes and points to a separate article for their use. However, the document does not provide the indicator formula, trading rules, plotted results, or a performance evaluation. It describes a technical tool and its configurable inputs, not a tested strategy or evidence that channel signals predict returns.
Key ideas
- KC_Cloud combines a moving average with Average True Range to form a price channel.
- Users can select the price mode and smoothing method and configure smoothing parameters.
- The ATR period and multiplier control the volatility input to the channel.
- A horizontal shift parameter adjusts the indicator's placement across bars.
- The document describes indicator inputs but supplies no trading rules or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.