SuperTrend+ Cleaned

The SuperTrend+ Cleaned indicator provides a refined approach to identifying market trends by incorporating advanced volatility filtering and trend confirmation mechanics.

Usage

The SuperTrend+ Cleaned indicator is used to identify the prevailing market direction and potential reversal points. Unlike a standard SuperTrend, this version requires a specific number of closed bars to exceed the threshold before confirming a trend change.

Traders can use the tool to:

• Identify Trend Direction: Green lines indicate a bullish trend, while red lines indicate a bearish trend.
• Spot Potential Reversals: Yellow segments on the trend line indicate that price has crossed the threshold but the trend change has not yet met the "Closed Bars" confirmation requirement.
• Execute Entries: Buy and Sell signals can be toggled to appear at the moment a trend reversal is confirmed.

The "Closed Bars" setting is critical for filtering out "whipsaws" or false breakouts, as it ensures the price sustains its position beyond the SuperTrend level before triggering a signal.

Details

This tool is a specialized variation of the SuperTrend+ concept, focusing on a more stable calculation method. It utilizes a Simple Moving Average (SMA) calculation for the Average True Range (ATR) rather than the traditional Wilder's smoothing.

Key technical enhancements include:

• Outlier Filtering: The script includes a "Maximum Deviation" parameter to filter out extreme volatility spikes that could otherwise distort the ATR calculation and cause the trend lines to expand excessively.
• Standard Deviation Integration: Users can add a standard deviation component to the ATR value, allowing the trend bands to account for both average volatility and the dispersion of that volatility.
• Confirmation Logic: The script tracks "unconfirmed" states where the price has breached the trend line but hasn't remained there for the user-defined duration, represented visually by yellow line segments.

Settings

Average True Range

• Period: The lookback period used to calculate the ATR value.
• Multiplier: The factor applied to the ATR to determine the distance of the trend line from the price.
• Maximum Deviation: Sets a cap on the true range values considered in calculations to mitigate the impact of outlier volatility.
• StdDev Multiplier: The amount of standard deviation added to the true range calculation to adjust for volatility variance.

Confirmation

• Closed Bars: The number of consecutive bars that must close beyond the current trend line to trigger a reversal.

Display

• Show Buy/Sell Signals?: Toggles the visibility of "Buy" and "Sell" labels on the chart.
• Highlighter On/Off?: Toggles the background shading between the price and the trend line.

FAQ

How do I use the "Closed Bars" setting?

The "Closed Bars" setting determines how many candles must close above or below the trend line before the indicator switches direction. Increasing this value reduces false signals but may result in slightly later entries.

What do the yellow lines represent?

Yellow lines represent an unconfirmed trend state. This occurs when the price has crossed the trend line, but the required number of confirmation bars has not yet been reached.

How can I access SuperTrend+ Cleaned?

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