OPEN-SOURCE SCRIPT
EMA of ATR
I want to identify whether the market is currently in a sideway or trending condition. To achieve this, I use the ATR (Average True Range) as an indicator. However, ATR alone does not clearly define the market condition.
To improve accuracy, I calculate an EMA (Exponential Moving Average) of ATR as a reference.
If ATR is above the EMA → The market is in a trend.
If ATR is below the EMA → The market is in a sideway phase.
This is my definition of market conditions.
To improve accuracy, I calculate an EMA (Exponential Moving Average) of ATR as a reference.
If ATR is above the EMA → The market is in a trend.
If ATR is below the EMA → The market is in a sideway phase.
This is my definition of market conditions.
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.
For quick access on a chart, add this script to your favorites — learn more here.
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.
For quick access on a chart, add this script to your favorites — learn more here.
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.