# Proximal Range Filter Proximal Range Filter is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. The Proximal Range Filter plots a trend line that moves only when price beats a volatility-scaled threshold, using L1 soft-thresholding to hold flat through noise and step with genuine moves. Line and fill flip green or red with the confirmed regime, and switch dots mark each flip at its breakout level. For trend traders who want fewer, cleaner state changes than a moving average delivers. - Indicator in the LuxAlgo Library, by LuxAlgo, published Feb 13, 2026. - Access: free. - Concepts: [Envelope](https://www.luxalgo.com/library/concept/envelope/) (primary), [ATR Trailing Regime](https://www.luxalgo.com/library/concept/atr-trailing-regime/) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn4w7g006uvhsguhwdoqop - Page: https://www.luxalgo.com/library/indicator/proximal-range-filter/ **Proximal Range Filter** plots a trend line that refuses to move until price earns it. Around its current state it maintains a noise threshold scaled from a 200-period average true range, a volatility-aware relative of the fixed-percentage [envelope](https://www.luxalgo.com/library/concept/envelope/), and applies L1 soft-thresholding: fluctuations inside the threshold leave the line flat, and only the excess beyond it updates the state. The result steps like a staircase through quiet stretches and tracks decisively once a genuine move begins. ## How to Trade the Proximal Range Filter? - **Green line and fill**: price has exceeded the upper threshold, a confirmed bullish regime for trend-following entries. - **Red line and fill**: the lower threshold has given way, confirming downside pressure. - **Trend Switch Dots**: printed at the previous filter level once a flip confirms (dots carry a one-bar offset), marking the breakout that ended the prior regime. - **Flat segments**: consolidations leave step-like levels that behave as support and resistance. In behavior it reads like an [ATR trailing regime](https://www.luxalgo.com/library/concept/atr-trailing-regime/) line, but the update comes from a prediction–adaptation cycle rather than a ratchet. Tune it to the market: raise the ATR Multiplier on volatile assets to suppress fake breakouts, raise the Adaptation Rate in strong trends to cut lag, and lower both in ranges to emphasize the stepped structure. ## Proximal Range Filter Settings - **Source**: the price series used in calculations, typically Close. - **ATR Multiplier**: sets the noise threshold. Higher values give a smoother line and stronger breakout confirmation, lower values earlier trend detection. - **Adaptation Rate (μ)**: how much of the gap between price and the predicted level the filter takes before the noise threshold is applied; 1.0 reacts hardest, while lower values need a larger move to shift the line and then step more gradually. ## Frequently Asked Questions ### What separates this from a moving average? A moving average adjusts on every bar, absorbing noise and signal alike. This filter updates only when price beats a volatility-adjusted threshold, so it stays flat through chop while preserving directional moves. For a ratchet-style regime line built on volatility as well, compare it with [Supertrend](https://www.luxalgo.com/library/indicator/supertrend/). ### Which settings suit high-volatility markets? Raise the ATR Multiplier so routine swings stay inside the threshold and fewer fake breakouts print. For scalping on lower timeframes, a lower multiplier with a moderate Adaptation Rate keeps the filter responsive enough to matter. ### Is the Proximal Range Filter free? Yes, grab it from the LuxAlgo Library at no cost; Quant, our coding agent, can also backtest it for you without leaving the page. You can also copy the source code from this page and run it anywhere Pine Script® runs. ## Related indicators - [Whittaker Envelope](https://www.luxalgo.com/library/indicator/whittaker-envelope/) (Envelope): markdown at https://www.luxalgo.com/library/indicator/whittaker-envelope.md - [Nadaraya-Watson Envelope](https://www.luxalgo.com/library/indicator/nadaraya-watson-envelope/) (Envelope): markdown at https://www.luxalgo.com/library/indicator/nadaraya-watson-envelope.md - [TTM Squeeze](https://www.luxalgo.com/library/indicator/ttm-squeeze/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/ttm-squeeze.md - [Fibonacci Bollinger Bands](https://www.luxalgo.com/library/indicator/fibonacci-bollinger-bands/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/fibonacci-bollinger-bands.md - [Double Bollinger Zones](https://www.luxalgo.com/library/indicator/double-bollinger-zones/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/double-bollinger-zones.md - [Bollinger Squeeze](https://www.luxalgo.com/library/indicator/bollinger-squeeze/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/bollinger-squeeze.md - [Bollinger Bands Breakout Oscillator](https://www.luxalgo.com/library/indicator/bollinger-bands-breakout-oscillator/) (Bollinger Bands): markdown at https://www.luxalgo.com/library/indicator/bollinger-bands-breakout-oscillator.md - [Donchian MA Bands](https://www.luxalgo.com/library/indicator/donchian-ma-bands/) (Donchian Channels): markdown at https://www.luxalgo.com/library/indicator/donchian-ma-bands.md --- Source: https://www.luxalgo.com/library/indicator/proximal-range-filter/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/