Adaptive SuperTrend with Flip Filters and Trend Strength

Summary

This SuperTrend variation adapts its ATR multiplier to the ratio of current ATR to a smoothed ATR average, widening bands in relatively volatile conditions and narrowing them when volatility is subdued. It adds an ATR-based cushion beyond the band before confirming a reversal and a minimum bar cooldown between flips, aiming to reduce wick-triggered signals and rapid reversals in sideways markets. Optional filters require RSI alignment and, if enabled, volume above a multiple of its recent average.

The indicator also estimates trend strength from price distance to the band in ATR units and RSI alignment, using the value to alter the band’s visual opacity; confirmed flips receive directional arrows. The document includes parameter defaults and a ProRealTime implementation, but reports no backtest or live-trading results. It says the approach is intended for trending instruments across daily and intraday timeframes and cautions that sideways markets can still produce noise. Its performance claims are qualitative, so the filters and settings require independent evaluation for each use case.

Key ideas

• The ATR multiplier adjusts to current volatility relative to a smoothed ATR baseline.
• A price cushion and post-flip cooldown aim to reduce false reversals and rapid signal changes.
• Optional RSI and volume conditions can filter potential signals.
• Trend strength combines band distance and RSI alignment to change the band’s visual opacity.
• The document provides code and suggested settings but no performance testing; sideways markets remain a stated limitation.

Tags

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