Range Filter: Suppressing Small Price Moves to Highlight Trends

Summary

This indicator is designed to make directional price movement clearer by filtering out changes smaller than a selected range. It calculates a smoothed or unsmoothed range from the chosen basis, then updates a price filter when price crosses the range threshold. Bands above and below the filter show the levels associated with a possible filter move, while the filter’s direction and bar colors provide a visual trend state.

The user can choose between two filter calculations, use closes or wicks as the movement source, and size the range through methods such as average change, ATR, standard deviation, percentage of price, ticks, or fixed units. Optional conditional averaging smooths filter values only when the filter changes. The document describes indicator mechanics and configuration options, including a trend output for other scripts; it gives no trading strategy, backtest, or performance evidence. Sensitivity depends on range sizing and smoothing choices, so the visualization is a way to summarize price movement rather than evidence that a trend will continue.

Key ideas

• The filter advances only when price movement reaches a configured range threshold.
• Range sizing can use volatility-based measures or fixed units.
• Users can choose whether wicks or closes determine filter movement.
• The indicator offers two calculation methods and optional smoothing of range and filter changes.
• Its trend state is visual and includes no documented performance validation.

Tags

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