Zero-Lag Trend Signals with ATR Bands and an RSI-ADX Range Filter

Summary

This indicator combines a zero-lag exponential moving average (ZLEMA), an ATR-based band, and an RSI-ADX filter intended to identify sideways conditions. A bullish or bearish trend state begins when price crosses beyond the corresponding band; the state is held while sideways conditions suppress new changes. The description also explains chart markers for trend changes and for later price recrosses of the ZLEMA.

The supplied specification gives default settings, including a 70-period lookback, a 1.2 band multiplier, and 14-period RSI and ADX inputs. Its band width uses the highest ATR over three times the lookback, scaled by the multiplier. The document provides implementation details and visual rules, but no backtest, market examples, or evidence that the filter improves results. The thresholds and defaults are design choices; their effectiveness across instruments and timeframes is not established.

Key ideas

• The ZLEMA basis is adjusted for lag using a shifted price input.
• ATR-based bands define thresholds for switching the bullish or bearish trend state.
• RSI and ADX conditions jointly flag sideways markets and suppress trend changes.
• Additional markers identify trend changes and price recrosses of the ZLEMA.
• The document gives indicator settings but provides no performance evidence.

Tags

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