ATR-Step Trend Channels with Retest and Continuation Signals

Summary

This indicator represents trend as a stepped line rather than a continuously sloping average. A price move beyond an ATR-scaled threshold changes the direction state; otherwise, the line advances in volatility-scaled increments. A configurable hold period can delay another direction change. Upper and lower channel bands are placed around the line using ATR, so their distance adjusts with volatility.

Optional markers identify price crossing a channel boundary as a retest, with a filter that restricts signals to the current trend direction. Separate markers can show each continuation step. The accompanying explanation proposes using these features to read directional persistence, pullbacks, and breakouts, but supplies no backtest or evidence of predictive value. Settings materially affect sensitivity, and the code's step-size cap is applied through a minimum operation, so its behavior should be checked carefully with the chosen parameters. This is a visual indicator, not a complete entry, position-sizing, or exit strategy.

Key ideas

• Trend direction changes when price moves beyond a threshold scaled by ATR.
• The trend line advances in discrete increments, and a hold setting can postpone another flip.
• ATR-based bands expand or contract with volatility around the stepped trend line.
• Optional retest markers can be filtered to align with the current trend direction.
• The indicator describes chart signals but supplies no performance evidence or full trading rules.

Tags

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