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Using Three ATR LWMA Periods to Identify Declining Volatility

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Summary

This indicator plots three ATR series smoothed with a linearly weighted moving average (LWMA). Its stated purpose is to help identify declining volatility by comparing the signal, fast, and slow period lines. The display assigns red to the signal-period series, aqua to the fast-period series, and blue to the slow-period series. The description therefore presents a visual volatility indicator, not a complete trading strategy or a defined set of trade-entry rules.

The notes mention a minor bug-fix update but provide no parameter values, formula details beyond the ATR and LWMA components, examples of signal interpretation, or empirical results. Without those details, readers cannot infer how the three lines should be combined, what constitutes a volatility decline, or whether the indicator has predictive value. It may serve as a charting aid, but the document alone does not establish its reliability or suitability for any market or timeframe.

Key ideas

  • The indicator displays three ATR series smoothed with linearly weighted moving averages.
  • Its stated use is to help identify declining volatility.
  • The signal, fast, and slow series are distinguished by red, aqua, and blue lines.
  • The description gives no parameter values, trading rules, or performance evidence.

Tags

VolatilityTechnical indicators

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