OPEN-SOURCE SCRIPT
Gaussian Filter Trend [QuantAlgo]
🟢 Overview
The Gaussian Filter Trend passes price through a multi-pole Gaussian filter and holds the result inside an adaptive volatility deadband, producing a stepped trend path that advances only once a move has cleared the band. That band is sized by an Efficiency Ratio, tightening when price travels directionally and widening through chop, so the line tracks sustained moves and sits still through noise. Around that path, a star field orbits at two volatility-scaled radii that fade with distance, echoing the decay of the filter's own weighting and making the current trend distinctly recognizable at a glance on any instrument or timeframe.
🟢 How It Works
The indicator's core methodology combines two mechanisms: a cascaded Gaussian filter that smooths the source series, and an efficiency-driven deadband that governs when that smoothed value is permitted to move the trend line.
First, the selected source is passed through one to four cascaded single-pole stages. A beta term derived from the filter length and the pole count sets the smoothing coefficient. Because pole count enters that calculation directly, adding poles rescales the filter response rather than layering more averaging onto the same curve:
Pine Script®
Next, efficiency is measured by comparing net directional movement against the total distance traveled over the efficiency window. The ratio moves toward one when travel is more directional and toward zero when price covers ground without net progress. It is then smoothed, so the deadband width is less likely to shift sharply from one bar to the next:
Pine Script®
The smoothed reading blends between a wider chop multiplier and a tighter trend multiplier, and that result scales Average True Range into the deadband width. Higher readings pull the envelope in, so the line can follow a move more closely. Lower readings push it out, which is intended to reduce flips in conditions where they are more likely. Disabling Adaptive Width bypasses the blend and applies a single fixed multiplier:
Pine Script®
Finally, the trend line carries its previous value forward and steps only when the envelope has moved past it. It drops when the upper band falls below the current level and rises when the lower band climbs above it, producing a stepped path rather than a continuous curve:
Pine Script®
A persistent direction state records the last step and carries it through flat segments, so the line color, star field, bar coloring and alerts all read from the same value rather than diverging while the line is stationary. The star field orbits that path at a distance scaled to recent average bar range, spreading as ranges expand and drawing in as they compress, so the trend and the volatility it is being measured against are visible in one read.
🟢 Signal Interpretation
▶ Bullish Trend (Long/Buy): When the lower band climbs above the trend line, the line steps higher and the indicator enters bullish state. The trend line and star field switch to the bullish color. This condition identifies potential long or buy opportunities and remains active until the upper band falls below the line and confirms a bearish step.
▶ Bearish Trend (Short/Sell): When the upper band falls below the trend line, the line steps lower and the indicator enters bearish state. The visual elements switch to the bearish color. This condition identifies potential short or sell opportunities and holds until the lower band climbs above the line and confirms a bullish step.
▶ Flat Path (Hold): When price stays inside the deadband, neither band displaces the line and it holds level. Color does not change, so the prior state is carried rather than reconfirmed. Extended flat runs indicate the efficiency reading has widened the band against choppier conditions, and the state resolves only when one side of the envelope clears the line.
🟢 Features
▶ Preconfigured Presets: Three parameter sets cover a range of trading styles and timeframes. "Default" uses four poles over a fourteen bar window for a balanced configuration aimed at swing trading on 1-hour and daily charts. "Fast Response" shortens the filter length and drops to two poles for a tighter path on 5-minute to 1-hour charts, which may suit intraday work at the cost of more frequent steps in choppier conditions. "Smooth Trend" lengthens the filter and widens the chop multiplier for a steadier baseline on daily and weekly charts, aimed at position trading. Selecting any preset other than Default overrides every Gaussian Filter and Trend Width input beneath it.
▶ Built-in Alerts: Three alert conditions support automated monitoring of trend transitions. "Bullish Trend Signal" fires on the bar the direction state flips to bullish. "Bearish Trend Signal" fires on the bar it flips to bearish. "Any Trend Change" triggers on either transition for traders who want a single unified alert regardless of direction. All alerts include the exchange, ticker, and timeframe in the message for immediate context.
▶ Visual Customization: Six color presets, Custom, Classic, Aqua, Cosmic, Cyber, and Neon, provide coordinated bullish and bearish color pairings suited to different chart themes and personal preferences. Selecting Custom exposes independent color pickers for both states, alongside an adjustable neutral color used during the initial warmup before the first directional step. Line width is configurable from one for a minimal look up to eight for a heavier path, and the star field toggles separately from the line so either element can be displayed on its own. Optional bar coloring and background shading tint the candles and chart field with the active trend color at configurable transparency levels, reflecting the current state without reading the line directly.
The Gaussian Filter Trend passes price through a multi-pole Gaussian filter and holds the result inside an adaptive volatility deadband, producing a stepped trend path that advances only once a move has cleared the band. That band is sized by an Efficiency Ratio, tightening when price travels directionally and widening through chop, so the line tracks sustained moves and sits still through noise. Around that path, a star field orbits at two volatility-scaled radii that fade with distance, echoing the decay of the filter's own weighting and making the current trend distinctly recognizable at a glance on any instrument or timeframe.
🟢 How It Works
The indicator's core methodology combines two mechanisms: a cascaded Gaussian filter that smooths the source series, and an efficiency-driven deadband that governs when that smoothed value is permitted to move the trend line.
First, the selected source is passed through one to four cascaded single-pole stages. A beta term derived from the filter length and the pole count sets the smoothing coefficient. Because pole count enters that calculation directly, adding poles rescales the filter response rather than layering more averaging onto the same curve:
Next, efficiency is measured by comparing net directional movement against the total distance traveled over the efficiency window. The ratio moves toward one when travel is more directional and toward zero when price covers ground without net progress. It is then smoothed, so the deadband width is less likely to shift sharply from one bar to the next:
The smoothed reading blends between a wider chop multiplier and a tighter trend multiplier, and that result scales Average True Range into the deadband width. Higher readings pull the envelope in, so the line can follow a move more closely. Lower readings push it out, which is intended to reduce flips in conditions where they are more likely. Disabling Adaptive Width bypasses the blend and applies a single fixed multiplier:
Finally, the trend line carries its previous value forward and steps only when the envelope has moved past it. It drops when the upper band falls below the current level and rises when the lower band climbs above it, producing a stepped path rather than a continuous curve:
A persistent direction state records the last step and carries it through flat segments, so the line color, star field, bar coloring and alerts all read from the same value rather than diverging while the line is stationary. The star field orbits that path at a distance scaled to recent average bar range, spreading as ranges expand and drawing in as they compress, so the trend and the volatility it is being measured against are visible in one read.
🟢 Signal Interpretation
▶ Bullish Trend (Long/Buy): When the lower band climbs above the trend line, the line steps higher and the indicator enters bullish state. The trend line and star field switch to the bullish color. This condition identifies potential long or buy opportunities and remains active until the upper band falls below the line and confirms a bearish step.
▶ Bearish Trend (Short/Sell): When the upper band falls below the trend line, the line steps lower and the indicator enters bearish state. The visual elements switch to the bearish color. This condition identifies potential short or sell opportunities and holds until the lower band climbs above the line and confirms a bullish step.
▶ Flat Path (Hold): When price stays inside the deadband, neither band displaces the line and it holds level. Color does not change, so the prior state is carried rather than reconfirmed. Extended flat runs indicate the efficiency reading has widened the band against choppier conditions, and the state resolves only when one side of the envelope clears the line.
🟢 Features
▶ Preconfigured Presets: Three parameter sets cover a range of trading styles and timeframes. "Default" uses four poles over a fourteen bar window for a balanced configuration aimed at swing trading on 1-hour and daily charts. "Fast Response" shortens the filter length and drops to two poles for a tighter path on 5-minute to 1-hour charts, which may suit intraday work at the cost of more frequent steps in choppier conditions. "Smooth Trend" lengthens the filter and widens the chop multiplier for a steadier baseline on daily and weekly charts, aimed at position trading. Selecting any preset other than Default overrides every Gaussian Filter and Trend Width input beneath it.
▶ Built-in Alerts: Three alert conditions support automated monitoring of trend transitions. "Bullish Trend Signal" fires on the bar the direction state flips to bullish. "Bearish Trend Signal" fires on the bar it flips to bearish. "Any Trend Change" triggers on either transition for traders who want a single unified alert regardless of direction. All alerts include the exchange, ticker, and timeframe in the message for immediate context.
▶ Visual Customization: Six color presets, Custom, Classic, Aqua, Cosmic, Cyber, and Neon, provide coordinated bullish and bearish color pairings suited to different chart themes and personal preferences. Selecting Custom exposes independent color pickers for both states, alongside an adjustable neutral color used during the initial warmup before the first directional step. Line width is configurable from one for a minimal look up to eight for a heavier path, and the star field toggles separately from the line so either element can be displayed on its own. Optional bar coloring and background shading tint the candles and chart field with the active trend color at configurable transparency levels, reflecting the current state without reading the line directly.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
🟢 Access our best trading & investing tools: joinquantalgo.com/plans
🟢 Free Special Edition indicators: joinquantalgo.com/special-editions
🟢 Discord: discord.gg/hJaFyGEAyX
🟢 Free Special Edition indicators: joinquantalgo.com/special-editions
🟢 Discord: discord.gg/hJaFyGEAyX
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
🟢 Access our best trading & investing tools: joinquantalgo.com/plans
🟢 Free Special Edition indicators: joinquantalgo.com/special-editions
🟢 Discord: discord.gg/hJaFyGEAyX
🟢 Free Special Edition indicators: joinquantalgo.com/special-editions
🟢 Discord: discord.gg/hJaFyGEAyX
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.