Adaptive Supertrend [algo_aakash]Adaptive Supertrend is a trend-following indicator that adjusts its sensitivity based on market efficiency. Instead of using a fixed ATR multiplier, the script utilizes Kaufman’s Efficiency Ratio (ER) to dynamically widen or tighten trend boundaries according to current price behavior.
The goal is to reduce noise during ranging conditions while remaining responsive during efficient directional trends.
Features
Dynamic ATR multiplier based on Efficiency Ratio
Adaptive trend detection
Optional volume confirmation filter
Bullish and bearish reversal markers
Trend cloud visualization
Continuation tracking dots
Multiple color themes
Non-repainting calculations
Alert conditions for trend shifts
Inputs
Core Trend Settings
ATR Period
Efficiency Ratio Period
Minimum Multiplier
Maximum Multiplier
Signal Filtering
Enable Volume Confirmation
Volume Moving Average Period
Visual Settings
Color Theme
Trend Cloud
Continuation Dots
Reversal Markers
Alerts
The script provides alert conditions for:
Adaptive Bullish Trend Shift
Adaptive Bearish Trend Shift
Alerts are generated only after trend direction changes are confirmed by the indicator logic.
How It Works
Kaufman’s Efficiency Ratio measures trend efficiency versus market noise.
The efficiency value dynamically adjusts the ATR multiplier.
Efficient trends use tighter multipliers.
Choppy markets use wider multipliers.
Adaptive bands are used to determine trend direction.
Optional volume confirmation can filter reversal signals.
Limitations
Trend-following indicators may lag during rapid market reversals.
Volume-based filtering depends on the quality of volume data.
Performance may vary across asset classes and timeframes.
Signals should be evaluated within a broader analysis framework.
Notes
Designed for chart analysis and trend identification.
Works on multiple markets and timeframes.
Does not predict future price movement.
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