VHF-Adaptive ALMA and High-Low Bands for Trend Signals
Summary
The document describes two related indicators: an Arnaud Legoux moving average whose offset adapts using the Vertical Horizontal Filter (VHF), and a high-low signal band built from separate adaptive averages of recent highs and lows. The VHF measures the range of price movement relative to the sum of its changes; that value adjusts the average’s offset. The band switches between its high and low lines when price and line movement satisfy directional conditions, and colors the selected line to indicate the state.
The author presents the combination as a rough idea for scalping, intended to react quickly to potential new moves, reverse on false signals, and adjust with volatility during trends. The document supplies indicator code and parameter examples, but gives no backtest, market, timeframe, or quantified performance evidence. Its usefulness is therefore a proposal rather than a demonstrated result; fast signals may also produce false entries, and the method’s suitability across instruments and trading conditions is unestablished.
Key ideas
- The VHF value dynamically adjusts the offset of the ALMA moving average.
- Separate adaptive averages of highs and lows form the signal band.
- Changes in price and band direction determine which line is displayed as the active state.
- The author proposes the indicator for scalping and trend continuation, but supplies no performance testing.
- The suggested responsiveness may produce false signals, and effectiveness across markets is unknown.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.