Follow Line Indicator: Bollinger Breakouts with an ATR-Adjusted Trend Line
Summary
The Follow Line indicator turns Bollinger Band breakouts into a directional trailing line. A close above the upper band sets the line below price, while a close below the lower band places it above price; an optional ATR adjustment widens the offset. During bars without a new breakout, the line carries forward, and its direction changes generate buy or sell markers. The supplied defaults use a 21-period band, one standard deviation, and a five-period ATR filter. The source plots signals and submits long or short entries when the line direction flips.
The document includes BTC/USDT Binance futures backtest settings spanning roughly one year, with a four-hour strategy period and 15-minute base period, but provides no performance statistics or evaluation of costs. It is an indicator-based reversal and trend-following framework rather than a fully specified risk plan: no explicit position sizing, profit target, or stop execution rules are described. The published source uses crossover signals and labels, so practical behavior should be checked against the intended chart and trading setup.
Key ideas
- Bollinger Band breakouts establish the direction of a carried-forward trend line.
- An optional ATR offset places the line farther from price to account for recent volatility.
- Changes in the line's direction produce buy and sell markers and corresponding entries in the source.
- The published futures test settings include no performance results or explicit position-sizing rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.