Volatility Adjusted Moving Average (Python)

This technique modifies a moving average band by a multiple of ATR. When price moves beyond the adjusted band, it indicates an accelerated trend. Long trades are opened above the upper band, shorts below the lower band. A cross back through the baseline moving average closes the position. Because the bands expand with volatility, stops adapt to market conditions.

• Entry Criteria: Price breaks above or below MA ± ATR multiplier.

• Long/Short: Both directions.

• Exit Criteria: Price crosses MA or stop.

• Stops: Yes.

• Default Values:

• MAPeriod = 20

• ATRPeriod = 14

• ATRMultiplier = 2.0m

• CandleType = TimeSpan.FromMinutes(5) [*]Filters:

• Category: Trend

• Direction: Both

• Indicators: MA, ATR

• Stops: Yes

• Complexity: Intermediate

• Timeframe: Intraday

• Seasonality: No

• Neural Networks: No

• Divergence: No

• Risk Level: Medium