Low-Frequency Filter Moving Average with ATR and Period Filtering

Summary

The document describes a moving average inspired by an electronic RC filter. It combines an amplitude filter based on average true range with a frequency filter intended to suppress waves whose periods are shorter than a threshold derived from the filter period. The calculation updates a smoothed value from median price and colors the line blue when it rises and red when it falls, suggesting long and short trend indications respectively.

The source provides indicator code but no chart examples, parameter guidance, performance measurements, or comparison with conventional moving averages. Its stated frequency behavior and trading signals are therefore claims to evaluate independently; the note does not establish that the filter removes unwanted market fluctuations or produces profitable trades. The code also depends on platform-specific variables and functions, so implementation details may need adaptation. It is best understood as a technical indicator concept rather than a validated trading strategy.

Key ideas

• The indicator combines an ATR-based amplitude condition with an RC-style smoothing update.
• Its frequency threshold is set by dividing the filter period by 3.5.
• The line is colored according to whether its current value is rising or falling.
• The document provides implementation code but no empirical performance evidence.

Tags

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