OPEN-SOURCE SCRIPT
[DT] ATR Trigger Bar Overlay
ATR Trigger candle is an idea that I originally heard about studying alexander elder's work at spike trade. This code is my interpretation of his work.
The idea behind an ATR trigger bar is to find areas where price is likely trapping market participants. In some cases a trigger will not form in one bar so a two bar analysis is also included in study.
Bull trap condition:
- price moves above previous bar high and in the same candle will close below previous bar close
Bear trap condition:
- price moves below previous bar low and in the same candle will close above previous bar close
TODO:
- categorize trigger bar as 1 bar or 2 bar price action
- allow user to filter 1 bar or 2 bar price action
- multiple timeframes
- volume filter
- horizontal line for average price on a trigger bar
The idea behind an ATR trigger bar is to find areas where price is likely trapping market participants. In some cases a trigger will not form in one bar so a two bar analysis is also included in study.
Bull trap condition:
- price moves above previous bar high and in the same candle will close below previous bar close
Bear trap condition:
- price moves below previous bar low and in the same candle will close above previous bar close
TODO:
- categorize trigger bar as 1 bar or 2 bar price action
- allow user to filter 1 bar or 2 bar price action
- multiple timeframes
- volume filter
- horizontal line for average price on a trigger bar
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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