Adaptive SuperTrend: Tightening ATR Bands After Momentum Divergence

Summary

This article describes an Adaptive SuperTrend that changes its ATR multiplier when a divergence signal from the MPO4 pressure oscillator appears. During a healthy trend, the indicator uses its base multiplier; after bullish or bearish divergence, it reduces that multiplier by a sensitivity factor, pulling the SuperTrend line closer to price. The proposed uses are to tighten a trailing stop as a trend weakens and to produce an earlier trend-change signal once price crosses the nearer line.

The article also explains an MQL5 implementation approach: per-bar buffers retain the latest divergence type and count bars since it occurred, so the compression can persist without relying on a single global variable that could cause historical values to change. The example keeps the adjustment active for up to 200 bars or until the trend flips. These are design claims and illustrative rules, not reported performance results. Divergence can be mistimed, tighter bands may react sooner to price movement, and the author advises testing parameters and considering broader market context.

Key ideas

• The indicator reduces its ATR multiplier after a detected divergence, tightening the SuperTrend band.
• A closer band is intended to protect open profits and signal a trend change sooner.
• Per-bar state buffers preserve divergence status and elapsed bars during historical recalculation.
• The example limits the compression by elapsed bars or a trend flip.
• The article gives no performance study and recommends testing the tool in context.

Tags

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