MA and ATR Bands for Slope-Filtered Crossovers

Summary

This indicator combines a moving average with Average True Range bands. It plots the moving average as a central reference, with upper and lower bands at 1.5 and 2 ATR distances. The proposed entry is a close across the moving average: a long signal follows a move from below to above, while a short signal follows a move from above to below. The moving-average slope must agree with the trade direction, positive for longs and negative for shorts.

The stated exit uses the nearer, 1.5 ATR band: a long closes below its lower threshold, and a short closes above its upper threshold. The description gives rules but no formula settings, instrument or timeframe, backtest, or performance evidence. It does not specify whether signals are evaluated intrabar or only at the close, nor how to handle gaps, transaction costs, or risk sizing. The bands visualize volatility-relative levels, but the document does not establish that the method is profitable.

Key ideas

• The indicator plots a moving average alongside volatility bands set at 1.5 and 2 ATR distances.
• A long entry requires price to cross above the average and the average to slope upward.
• A short entry requires price to cross below the average and the average to slope downward.
• The proposed exit occurs when price crosses the 1.5 ATR band against the position.
• No tests or performance evidence are supplied.

Tags

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