Masa_1234

ATR-ranged Donch on 15min

// This is a simple Mean Reversion & Breakout Indicator.
// A Donchian Channel is plotted. A threshold equal to 0.25 of Daily ATR.
// If price reverses from this threshold, then it can be taken as possible Mean Reversion.
// If price crosses the previous Donchian levels, it can be taken as a possible breakout.
// Typical of such strategy is the whipsaw effect when price movement is just flat.
// I have marked the region where the lower and higher thresholds are closer to be an indicative of whipsaw.
// But it is not really effective to avoid whipsaw.
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 a publication is governed by House Rules. You can favorite it to use it on a chart.

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Comments

A simple Mean Reversion & Breakout Indicator. But, needs a better parameters to identify (predict?) whipsaw regions. Any ideas are welcome.
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Unbaam Masa_1234
@Masa_1234, Good indicator. Thanks. Daily pivot movement is one decent indicator for ranging / trending market filter. Trending markets, the gap between pivots grows and vice versa on ranging.
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@Unbaam, I am glad that you are finding it useful. Thanks for the good words.
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