An ATR-Based SuperTrend That Widens Its Buffer Near Price Noise

Summary

This SuperTrend variant uses an ATR-based line and a selectable price source to determine trend direction. When the close is within a configurable ATR distance of the prior trend line, the line retreats by an ATR-scaled amount instead of following its usual update rule. The script plots this noise state with a dotted band and uses changes in trend direction to enter long or short positions.

The published code exposes ATR length, band multiplier, noise threshold, and expansion size; its defaults include a 10-period ATR and a multiplier of 3. The accompanying description recommends several chart intervals and claims suitability for backtesting, but supplies no performance report, test period, or measured evidence. The code does include stated capital, cash sizing, and commission assumptions, yet it does not show stop-loss, take-profit, or position-sizing rules tied to risk. The proposed buffer adjustment is a design idea, not demonstrated proof that false signals or losses are reduced; it would need testing across markets and regimes.

Key ideas

• The trend line is based on a selectable price source and an ATR-scaled band.
• When price is close to the prior line, the noise rule moves the line away from price by a configurable ATR amount.
• A trend-direction change triggers a long or short entry.
• The script distinguishes ordinary and noise-state bands through solid and dotted plots.
• The document supplies no empirical results to establish whether the modification improves performance.

Tags

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