Limiting Skyscraper Indicator Volatility to a Fixed ATR Period

Summary

The document describes a revised Skyscraper indicator, which uses NRTR-style lines to represent trend relative to price. In the original version, volatility for the current bar is calculated using all earlier chart bars. As more bars accumulate, the resulting NRTR line can drift progressively farther from current prices, making the calculation less suitable for general use.

The proposed fix limits the volatility calculation to a user-set ATR lookback period, with a default length of 10. It also changes the indicator's middle line to follow an NRTR-like form and color it according to the current trend. This is a description of an indicator modification rather than a tested trading strategy: the document supplies no chart evidence, performance results, or rules for entering and exiting trades. The usefulness of the adjustment therefore depends on the instrument, timeframe, and how the indicator is incorporated into a broader system.

Key ideas

• The original indicator calculates volatility across all prior chart bars, which can push its NRTR line away from current price.
• The revised version limits volatility estimation to a configurable ATR lookback.
• The middle line is also made NRTR-like and colored to reflect the current trend.
• The document offers no backtest or trading rules to establish the indicator's effectiveness.

Tags

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