An EMA and ATR Curvature Trend Band Approximation

Summary

The document describes an approximation of a curvature trend indicator using an exponential moving average as its central trend line and average true range to scale upper and lower bands. The bands begin at a chosen ATR multiple from the moving average, then shift slightly in the direction of the latest price change. The output is three chart lines intended to show trend direction and dynamic support or resistance areas.

It provides a ProRealCode-style example and names adjustable settings for band distance, curvature step, ATR lookback, and trend length. The method is a simplified recreation rather than a native curvature calculation: the central EMA does not itself change based on the price-direction adjustment, while the bands do. The document offers no backtest, trading rules, or evidence that the bands identify reversals reliably. Traders would need to define how signals are used and test the parameters across instruments and market conditions.

Key ideas

• An exponential moving average provides the central trend reference.
• Average true range scales the distance of the upper and lower bands.
• The bands shift with the most recent price direction to approximate curvature.
• The indicator returns three lines but does not specify a complete entry or exit strategy.

Tags

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