Q-Trend: ATR-Adjusted Breakouts from a Rolling Price Midpoint

Summary

Q-Trend combines a rolling price midpoint with average true range to create a trend line and volatility-adjusted thresholds. The midpoint is calculated from the highest and lowest source values over a chosen trend period. A sensitivity band is formed by multiplying ATR by a user-set factor; source prices crossing above or below the band trigger directional changes and shift the trend line. The line can also be viewed as potential support or resistance.

Settings include the trend window, ATR period and multiplier, optional source smoothing, and alternate signal display modes. The supplied description says the tool may suit swing or trend trading and favors less volatile markets. It also describes additional “strong” buy and sell markers based on where opens fall within the recent high-low range. The document gives implementation logic but no backtest, market-specific evaluation, or evidence that signals are profitable. Its stated sensitivity explanation is not fully consistent with the formula: increasing the ATR multiplier widens the thresholds, so the practical effect depends on how breakouts are interpreted.

Key ideas

• The trend line is the midpoint between rolling source-price highs and lows.
• ATR multiplied by a sensitivity factor sets the upper and lower thresholds for trend changes.
• A source-price break above or below a threshold shifts the line and changes its direction.
• The indicator includes optional source smoothing and alternate ways to display signals.
• The document provides no performance tests, and its description of multiplier sensitivity conflicts with the threshold formula.

Tags

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