Auto SuperTrend+

The Auto SuperTrend+ indicator is a trend-following tool that measures volatility to dynamically determine trend ranges and potential reversal points. By calculating upward and downward volatility separately, it adapts to asymmetrical market movements to provide a more responsive tracking mechanism compared to standard trend indicators.

Usage

The indicator identifies the prevailing market trend by plotting dynamic upper and lower boundaries. When the price is in an uptrend, the lower boundary acts as support; conversely, in a downtrend, the upper boundary acts as resistance.

Key usage scenarios include:

• Trend Identification: The color-coded boundaries and optional background highlighting provide immediate visual confirmation of the current trend direction.
• Reversal Signals: "▲" and "▼" labels appear when the price breaks the opposite boundary with sufficient confirmation, signaling a potential trend change.
• Warning States: The boundary lines change color (defaulting to blue) when the price touches them but hasn't yet confirmed a full breakout, serving as an early warning for potential exhaustion.
• Midpoint Tracking: An optional midpoint line can be enabled to serve as a secondary level for trailing stops or pullback entries.

Details

This script is a variation of the SuperTrend+ concept but utilizes adaptive volatility measurements. It employs a Weighted Moving Average (WMA) for its internal calculations to ensure a recency bias, making the indicator more sensitive to current price action. Unlike many indicators that rely solely on bar counts, this tool allows users to define measurement lengths in Minutes, Days, or Bars, ensuring that the results remain consistent across different timeframes.

The logic incorporates a "Confirmation (Tolerance)" system using an ATR multiple. This requires the price to not only cross a boundary but to sustain that breach for a user-defined number of closed bars, or to exceed a specific ATR-based distance, before a reversal is officially triggered. This helps filter out market noise and "fakeouts."

Settings

Volatility

• Length Value: The numerical value for the lookback period used to measure the range of movement.
• Length Type: Determines if the length value is calculated in Bars, Minutes, or Days.

Deviation Measurement

• Level: The multiplier applied to the volatility calculation to set the boundary distance.
• Deviation Length Value: The lookback period specifically for measuring the deviation of the range.
• Deviation Length Type: Sets the unit of measurement (Bars, Minutes, Days) for the deviation length.

Confirmation (Tolerance)

• ATR Multiple: Sets a tolerance buffer based on the Weighted Average True Range to filter minor breaches.
• Closed Bars: The number of consecutive bars that must close beyond the boundary to confirm a trend reversal.

Display

• Show Highlighter?: Toggles the background color fill between price and the active trend boundary.
• Show Reversal Labels?: Enables or disables the "▲" and "▼" labels at trend change points.
• Show Middle Point?: Toggles the visibility of the average line between the upper and lower boundaries.

FAQ

How do I interpret the warning color on the lines? The boundary line changes to the "Warning" color (default blue) when the price is currently testing the boundary. This indicates the trend is under pressure but a reversal has not yet been confirmed by the "Closed Bars" or "ATR Multiple" settings.

Why does the indicator look different when I change the Length Type? The "Length Type" setting allows you to anchor the calculations to time (Minutes/Days) rather than just the number of bars on your current chart. This helps maintain a consistent volatility lookback even if you switch between different chart intervals.

How can I access this indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.