LOWESS and Adaptive Gaussian Smoothing for Trend and Pivot Breaks

Summary

This indicator combines a custom LOWESS smoother with a volatility-adaptive Gaussian moving average. Its Gaussian calculation uses ATR and close-price standard deviation to adjust weighting, then applies LOWESS smoothing. The smoothed line’s direction, measured against its value two bars earlier, determines its up or down color; color changes also mark possible trend turns.

The script identifies pivot highs and lows using configurable bar counts, extends levels until price crosses them, and can display counts of consecutive upward or downward breaks. An optional scatterplot visualizes the Gaussian average. These are charting and signal-interpretation features, not evidence of trading performance: the document provides no backtest or comparison, and pivot confirmation depends on bars to the right, which can delay recognition. The indicator’s thresholds and visual cues therefore need independent testing before use as entry or exit rules.

Key ideas

• The Gaussian moving average adapts its weights using ATR and close-price standard deviation.
• A LOWESS pass smooths the Gaussian average to make its direction easier to read.
• The smoothed line’s comparison with its value two bars earlier sets the trend color and identifies turning points.
• Confirmed pivot levels are extended until price crosses them, with optional consecutive-break counts.
• The description supplies no performance evidence, so its visual signals require independent evaluation.

Tags

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