Range Filtered Trend Signals [AlgoAlpha]

Introducing the Range Filtered Trend Signals, a cutting-edge trading indicator designed to detect market trends and ranging conditions with high accuracy. This indicator leverages a combination of Kalman filtering and Supertrend analysis to smooth out price fluctuations while maintaining responsiveness to trend shifts. By incorporating volatility-based range filtering, it ensures traders can differentiate between trending and ranging conditions effectively, reducing false signals and enhancing trade decision-making.

:key: Key Features

• :white_check_mark: Kalman Filter Smoothing – Minimizes market noise while preserving trend clarity.
  
• :bar_chart: Supertrend Integration – A dynamic trend-following mechanism for spotting reversals.
  
• :fire: Volatility-Based Range Detection – Detects trending vs. ranging conditions with precision.
  
• :art: Color-Coded Trend Signals – Instantly recognize bullish, bearish, and ranging market states.
  
• :gear: Customizable Inputs – Fine-tune Kalman parameters, Supertrend settings, and color themes to match your strategy.
  
• :bell: Alerts for Trend Shifts – Get real-time notifications when market conditions change!
  

:tools: How to Use

1. Add the Indicator – Click the star icon to add it to your TradingView favorites.
   
2. Analyze Market Conditions – Observe the color-coded signals and range boundaries to identify trend strength and direction.
   
3. Use Alerts for Trade Execution – Set alerts for trend shifts and market conditions to stay ahead without constantly monitoring charts.
   

:mag: How It Works
The Kalman filter smooths price fluctuations by dynamically adjusting its weighting based on market volatility. It helps remove noise while keeping the signal reactive to trend changes. The Supertrend calculation is then applied to the filtered price data, providing a robust trend-following mechanism. To enhance signal accuracy, a volatility-weighted range filter is incorporated, creating upper and lower boundaries that define trend conditions. When price breaks out of these boundaries, the indicator confirms trend continuation, while signals within the range indicate market consolidation. Traders can leverage this tool to enhance trade timing, filter false breakouts, and identify optimal entry/exit zones.