Step ALMA-VHF Bands with ATR-Based Trend Filtering

Summary

This indicator combines an ALMA price smoother whose offset adapts to the Vertical Horizontal Filter (VHF) with high-low bands and a stepped trend display. It calculates smoothed values from highs and lows, then changes its underlying trend state when price crosses specified band conditions. An ATR-based step size sets the spacing of the plotted line, while price crossings of wider step thresholds switch its displayed direction and color. The document includes both the main indicator and the supporting ALMA-VHF calculation.

The example settings use a seven-bar ALMA window, a 21-period VHF, and a 14-period ATR step, with sensitivity controlling the step scale. The result resembles a SuperTrend-style filter, but the material provides code and design rationale rather than backtest results or trading rules. Performance, asset suitability, and parameter robustness are not evaluated; thresholds and smoothing choices may behave differently across markets and timeframes.

Key ideas

• The VHF value adapts the offset used by the ALMA smoother.
• Smoothed high and low series define bands used to determine the indicator’s trend state.
• ATR sets the scale of the step spacing, with sensitivity adjusting its size.
• Price crossings of step thresholds change the plotted direction and color.
• The example specifies parameters but reports no performance or robustness testing.

Tags

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