stelaraX - Range Filter

stelaraX – Range Filter

stelaraX – Range Filter is a volatility-based trend indicator designed to filter out minor price fluctuations and highlight meaningful directional moves. By combining ATR-based range smoothing with directional persistence logic, it helps traders distinguish real trend shifts from short-term noise.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
stelarax.com

Core logic

The Range Filter builds a smoothed volatility envelope using an EMA of true range and only updates its central filter line when price exceeds a defined range threshold.

Key principles:

* a smoothed ATR defines the adaptive movement threshold
* the filter line updates only when price exceeds the threshold
* minor price movements within the range are ignored
* directional persistence is tracked using consecutive up/down counts
* the first bar of a new directional sequence triggers a signal

This logic reduces whipsaws by requiring price to move meaningfully beyond recent volatility before confirming direction.

Visualization

The script plots:

* the central Range Filter line directly on the price chart
* upper and lower volatility bands around the filter line
* dynamic coloring of the filter based on directional bias
* triangle markers on initial bullish and bearish direction changes
* alert conditions for bullish and bearish transitions

The result is a clean, smoothed trend overlay with clear breakout-style confirmations.

Use case

This indicator is intended for:

* filtering noise in sideways markets
* identifying early trend transitions
* confirming breakout moves beyond volatility thresholds
* supporting systematic trend-following strategies
* combining with structure and momentum tools for higher confidence setups

It performs best in markets transitioning from compression to expansion and integrates well with AI-assisted chart evaluation.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.