Price Range Filter for Suppressing Minor Moves and Tracking Trends

Summary

This experimental indicator adapts a volatility filter to price itself, aiming to suppress movements smaller than a configurable range. It calculates a range from a selected scale, optionally smooths that range, then updates a trailing filter only when price crosses the range threshold. Upper and lower bands mark the levels that can trigger movement, while candle colors reflect the filtered direction and whether the close rose or fell.

The range can be sized in points, pips, ticks, a percentage of price, ATR, average absolute price change, or standard deviation. Users can select between two filter formulas and choose closes or candle wicks as the movement source. The document provides implementation code and a description, but no performance tests, trading rules, or evidence that the filter improves results. Its trend display should therefore be treated as an exploratory indicator, with behavior dependent on scale, smoothing, and source settings.

Key ideas

• The filter updates only when price moves beyond a configurable range threshold.
• Range size can use fixed units or volatility-based measures.
• Optional smoothing applies to the dynamic range measures.
• Movement can be evaluated using closing prices or candle highs and lows.
• The document describes an experimental visualization and provides no performance evidence.

Tags

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