An OBV-Based Supertrend Adjusted by a Volatility Range
Summary
The document describes a trend indicator that combines a modified On-Balance Volume series with Supertrend levels and a volatility-based adjustment. OBV supplies the input used to make the trend calculation more responsive, while a volatility factor changes how much price movement is needed to switch the indicated trend. The author frames this as a way to retain sensitivity while extending trend detection, a trade-off they identify in a conventional Supertrend.
The text gives example settings for Bitcoin on a four-hour chart and for stocks, and says users should tune the factor for each asset. It includes a ProRealTime implementation, but provides no systematic comparison, backtest, or performance evidence. The settings are therefore examples rather than validated recommendations; the document does not quantify false signals, transaction costs, or how parameter selection should be evaluated.
Key ideas
- The indicator combines modified OBV, Supertrend levels, and a volatility adjustment.
- OBV is used as the Supertrend input to increase responsiveness.
- A volatility factor changes the threshold for switching the indicated trend.
- The author recommends tuning the factor separately for each asset.
- The document offers example settings but no performance study or quantified validation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.