Smooths Trend BreakerSmooths Trend Breaker
Overview
Smooths Trend Breaker is a trend identification and entry timing tool that combines an adaptive ATR-based supertrend, a higher timeframe EMA trend filter, volume confirmation, an RSI gate, a price compression range detector, and FVG-gated star candlestick pattern recognition. Each component was chosen to address a specific weakness in standalone supertrend systems — noise in choppy markets, late entries, and signals that contradict the larger trend — and all components work together as a single decision framework rather than as separate overlapping indicators.
Component Methodology
Adaptive Supertrend Engine
The core engine uses an ATR-based supertrend calculation. True Range is computed on each bar as the maximum of the current high-low range, the absolute distance from the prior close to the current high, and the absolute distance from the prior close to the current low. ATR is then derived using Wilder's smoothing method — a modified exponential moving average with a smoothing factor of 1/N — rather than a simple average, which gives more weight to recent volatility while maintaining memory of past conditions.
The upper and lower bands are calculated as the midpoint of the bar's high-low range plus or minus the ATR multiplied by a user-defined multiplier. Bands are then locked directionally — the lower band can only move upward and the upper band can only move downward — preventing the line from retreating when price moves against the trend. The trend direction flips only when a closing price crosses the opposite band, not on intrabar wicks, ensuring signals are close-confirmed.
Rather than using fixed ATR settings across all timeframes, the indicator auto-selects ATR length and multiplier based on the chart's timeframe in seconds. Shorter timeframes receive a shorter ATR period and higher multiplier to account for proportionally larger noise relative to signal. Longer timeframes receive a longer period and lower multiplier to avoid over-sensitivity on slower-moving instruments. This eliminates the need to manually adjust parameters when switching timeframes.
Higher Timeframe EMA Filter
When enabled, the indicator uses `request.security()` to retrieve a 50-period EMA from a higher timeframe selected automatically based on the chart timeframe — for example a 15-minute EMA is referenced when viewing a 5-minute chart, and a 4-hour EMA is referenced when viewing a 1-hour chart. A Buy label is only confirmed when price closes above this EMA and a Sell label is only confirmed when price closes below it, aligning entries with the larger structural trend.
Volume Confirmation
The volume filter computes a 20-bar simple moving average of volume. A signal is confirmed only when the flip bar's volume exceeds this average by a user-defined threshold, defaulting to 1.2 times the average. This filters out supertrend flips that occur on low-participation bars, which have historically higher failure rates.
RSI Gate
A 14-period RSI using Wilder's smoothing is computed on each bar. Buy signals are blocked when RSI exceeds a user-defined overbought level (default 70) and Sell signals are blocked when RSI falls below a user-defined oversold level (default 30). This prevents chasing exhausted moves at extremes.
Range Breaker
The Range Breaker compares the current N-bar rolling range (highest high minus lowest low) against the prior N-bar rolling range from the equivalent lookback window shifted N bars back. When the current range is less than a defined ratio of the prior range — meaning price has compressed significantly relative to its recent volatility — a consolidation zone is declared. Horizontal lines are drawn at the highest high and lowest low of the active zone and extend forward with the current bar. When a closing price breaks outside either level the zone is sealed and a breakout marker fires.
Star Pattern Detection with FVG Gate
Morning Star, Morning Doji Star, Evening Star, and Evening Doji Star patterns are detected using strict 3-candle criteria. The first candle must be a strong directional bar with a body filling at least 50% of its range. The middle candle — the star — must have a body of 25% or less of its range and a total range smaller than 80% of the first candle's body. The confirmation candle must be directionally opposite to the first candle with a body filling at least 40% of its range, closing past the midpoint of the first candle's body.
Additionally, a Fair Value Gap check is applied to the candle immediately before the star. A bearish FVG exists when the high of bar N is below the low of bar N+2, creating a downward price gap. A bullish FVG exists when the low of bar N is above the high of bar N+2, creating an upward price gap. An Inverse FVG check scans back 45 bars for a prior FVG zone whose price range overlaps with the pre-star candle, indicating price has returned to fill an old imbalance. If neither an FVG nor an IFVG is present on the candle before the star, the pattern does not fire regardless of candle structure. This ensures every star signal is anchored to a real price imbalance.
How to Use It
The highest probability setups occur when the supertrend line has already established direction, the range detector is not showing an active chop zone, and a signal fires with volume and HTF agreement. The Range Breaker lines are a caution flag — while they are active and unbroken, the supertrend will produce lower quality signals due to market compression. The star patterns provide a precision entry trigger that can be used to time entries at reversal points, particularly when a star fires near an active Range High or Range Low level.
Trend continuation
Wait for a pullback toward the supertrend line, then enter when the next Buy or Sell label prints in the direction of the established trend.
Breakout entries
When a range zone has been active for several bars and the supertrend is already pointing in one direction, a range breakout marker firing in that same direction is a high-quality entry trigger.
Star entries
A star pattern firing at or near a Range High or Range Low, with the supertrend already in agreement, represents the highest confluence setup available in the indicator.
What to avoid
Do not enter trend signals while a range zone is active with no breakout. Do not take signals that contradict the HTF EMA. Do not enter late into an extended trend where price is far from the supertrend line.
Settings
ATR Length and Multiplier auto-scale by timeframe but can be manually overridden. Volume threshold multiplier defaults to 1.2× the 20-bar average. RSI overbought and oversold levels default to 70 and 30. Range sensitivity has three modes controlling lookback period, compression ratio, and minimum bar count. Past zones to display defaults to 5, maximum 20.
Penunjuk Pine Script®
