OPEN-SOURCE SCRIPT
ATR Percentile [racer8]
ATR Percentile shows you the percentile that the current ATR is at relative to it's previous values.
There are 3 parameters: ATR length, Percentile length, Percentile level.
This is indicator is very interesting because it's based on an indicator that originally doesn't generate signals.
When the current ATR's percentile is higher than the Percentile level, the histogram turns red signalling that the market is more volatile than usual.
For example, ATR len = 10, percentile len = 80, percentile lvl = 70
A signal will be generated when the current ATR(10) is higher than 70% of 80 of it's previous values.
ATR Percentile is range bound between 0 and 100. The histogram's value represents a percentage between that range.
ATR Percentile = ( number of ATR values below current ATR over n periods / n periods ) * 100
Enjoy 🤪
There are 3 parameters: ATR length, Percentile length, Percentile level.
This is indicator is very interesting because it's based on an indicator that originally doesn't generate signals.
When the current ATR's percentile is higher than the Percentile level, the histogram turns red signalling that the market is more volatile than usual.
For example, ATR len = 10, percentile len = 80, percentile lvl = 70
A signal will be generated when the current ATR(10) is higher than 70% of 80 of it's previous values.
ATR Percentile is range bound between 0 and 100. The histogram's value represents a percentage between that range.
ATR Percentile = ( number of ATR values below current ATR over n periods / n periods ) * 100
Enjoy 🤪
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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