Trend Magic

CCI + ATR trend trail.

Trend Magic combines an ATR band with the Commodity Channel Index (CCI) to produce a single trend line. When CCI is non-negative, the line is anchored to `low − ATR` (a rising support floor); when CCI turns negative, it switches to `high + ATR` (a falling resistance ceiling). The line only moves in the favourable direction — it never gives ground in the active trend.

Anchoring to wick extremes instead of close or hl2 keeps the stop just beyond recent noise. The CCI gate adds a momentum filter, so the line flips on a measurable shift in price acceleration rather than only on a band breach.

Defaults are typically CCI period 20 and ATR period 5 with factor 1, but the parameter set is sensitive — test before deploying.

if CCI ≥ 0:  line = max(line_{t−1}, low − ATR)
if CCI < 0:  line = min(line_{t−1}, high + ATR)

Lies die vollständige Definition von Trend Magic im Glossar →