A Supertrend Variant with ATR or Standard Deviation Filters

Summary

This note distinguishes a simple Supertrend-style indicator from versions that use Commodity Channel Index zero-line crosses. It explains that a CCI zero crossing corresponds to price crossing its simple moving average, while adding an Average True Range filter can make the resulting signal resemble the commonly recognized Supertrend. The described variant uses a simpler calculation and lets the user choose either ATR or standard deviation as the filter. Indicator color changes serve as the trade signals.

Key ideas

• Some Supertrend variants use CCI zero-line crossings, which occur as price crosses its simple moving average.
• An ATR filter can be added to those crossings to produce a familiar Supertrend-style indicator.
• The described variant offers ATR and standard deviation as alternative filters.
• Standard deviation tends to react faster than ATR, so its settings may need experimentation.
• The note gives no backtest results or detailed parameter guidance, so signal quality and suitability remain unverified.

Tags

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