OPEN-SOURCE SCRIPT
ATR Daily Band
Updated
This indicator draws an upper and lower band for each day. It uses the Average True Range calculation (with configurable lookback) and places the band at 1ATR above and 1ATR below the daily open.
I use this indicator as a simple gauge to tell how significant price movement is, and get a feel for the daily volatility. Due to the fractal nature of price action, it can be difficult to determine if a price movement is significant while zoomed in on a single intraday chart. Using this indicator, I can tell if the price action is approaching the ATR or if it's just staying within the band.
Strategies: Useful for both mean reversion and momentum strategies. It's up to you to decide how this metric will fit into your trading strategy. I currently use this indicator to look for mean reversion setups, but that is due to the current market conditions and my personal trading style.
I use this indicator as a simple gauge to tell how significant price movement is, and get a feel for the daily volatility. Due to the fractal nature of price action, it can be difficult to determine if a price movement is significant while zoomed in on a single intraday chart. Using this indicator, I can tell if the price action is approaching the ATR or if it's just staying within the band.
Strategies: Useful for both mean reversion and momentum strategies. It's up to you to decide how this metric will fit into your trading strategy. I currently use this indicator to look for mean reversion setups, but that is due to the current market conditions and my personal trading style.
Release Notes
Added labels on today's band showing price level and percentage move.Release Notes
This update changes the ATR band to be centered on "yesterday's close" instead of the "today's open". This means that the ATR percentages will align with reported movements of the symbol.For example, if the ATR band for QQQ is at 1.4%, as the price increases that day to 1.4% up, the candle will hit the ATR band. Previously with the band centered at the open, a 1.4% move might have been at a different place than the ATR band depending on how much after-hours movement happened.
Release Notes
move the label to the left side of the opening bar so it doesn't get drawn on top of today's data.Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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