NRTR Trend Reversal Filtering with Highs and Lows
Summary
The NRTR indicator tracks price extremes using highs and lows, maintaining a preset distance from the most recently reached extreme. In an uptrend it appears below price, while in a downtrend it appears above price. The offset is intended to ignore modest countertrend pullbacks while the prevailing move continues.
A countertrend move that exceeds the chosen filter distance is treated as a signal that the trend has fully reversed. The document explains the indicator’s basic interpretation but does not provide parameter guidance, specific entry or exit rules, or empirical results.
Its main limitation is dependence on market conditions: the author says the simplified method can work well when prices trend but may perform poorly during sideways periods. No evidence is included to quantify that difference, so the description should be treated as a conceptual overview rather than a tested trading system.
Key ideas
- NRTR uses highs and lows to track price extremes at a preset offset.
- The indicator is plotted below price in an uptrend and above price in a downtrend.
- A countertrend move beyond the offset is interpreted as a full trend reversal.
- The described approach may struggle during non-trending markets, and no empirical results are supplied.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.