OPEN-SOURCE SCRIPT
SMA50 ATR%
SMA50 ATR% Zones Indicator
Overview:
The "SMA50 ATR%" indicator is designed to provide dynamic zones above and below a Simple Moving Average (SMA) based on multiples of the Average True Range (ATR). These zones can help traders identify potential areas of interest for entries, profit-taking, and stop-loss placement by visualizing how far the price has deviated from its medium-term mean (SMA) relative to its recent volatility (ATR).
Key Features:
Central SMA: Plots a customizable Simple Moving Average (default 50-period) as the baseline.
ATR-Based Zones: Calculates and displays distinct zones by adding or subtracting multiples of the ATR (default 10-period) from the SMA.
Color-Coded Visuals: Each zone type is clearly differentiated by color and shading intensity, providing an intuitive visual guide.
Current Zone Label: Displays the specific ATR multiple zone the current price is trading in, offering quick insight into the market's current position relative to the zones.
Zone Breakdown:
The indicator plots the following zones:
Entry Zones (Green Shades):
+1x ATR to +2x ATR above SMA
+2x ATR to +3x ATR above SMA
+3x ATR to +4x ATR above SMA
The green shades become progressively lighter as they move further from the SMA, with the zone closest to the SMA being the darkest green.
Hold Zones (Yellow Shades):
+4x ATR to +5x ATR above SMA (Darker Yellow)
+5x ATR to +6x ATR above SMA (Lighter Yellow)
Sell Zones (Red Shades):
+6x ATR to +7x ATR above SMA
+7x ATR to +8x ATR above SMA
+8x ATR to +9x ATR above SMA
+9x ATR to +10x ATR above SMA
+10x ATR to +11x ATR above SMA
The red shades become progressively darker as they move further from the +6x ATR level, with the +10x to +11x ATR zone being the darkest red.
Stop Loss Zones (Red Shades):
-1x ATR below SMA (Lighter Red)
-1x ATR to -2x ATR below SMA (Darker Red)
How to Use:
Potential Entry Areas: The green "Entry Zones" might indicate areas where the price has pulled back towards the SMA but is still showing strength, or areas where a breakout above the SMA is gaining momentum relative to volatility.
Potential Overbought/Hold Areas: The yellow "Hold Zones" could suggest that the price is becoming extended from its mean, warranting caution or a "hold" approach for existing positions.
Potential Profit-Taking/Sell Areas: The red "Sell Zones" might highlight significantly overbought conditions where the price has moved multiple ATRs above the SMA, potentially signaling areas for profit-taking or considering short entries.
Potential Stop-Loss Areas: The red "Stop Loss Zones" below the SMA can help define areas where a breakdown below the moving average, considering volatility, might invalidate a bullish bias.
Customization:
SMA Length: Adjust the period for the Simple Moving Average (Default: 50).
ATR Length: Adjust the period for the Average True Range calculation (Default: 10).
Show Current Zone Label: Toggle the visibility of the on-screen label that displays the current price's ATR zone.
SMA Line Width: Customize the thickness of the SMA line.
Label Position & Size: Control the placement and text size of the current zone label for optimal chart readability.
Disclaimer:
This indicator is a tool for technical analysis and should not be considered as financial advice. Always use risk management and combine with other analysis methods before making trading decisions.
Overview:
The "SMA50 ATR%" indicator is designed to provide dynamic zones above and below a Simple Moving Average (SMA) based on multiples of the Average True Range (ATR). These zones can help traders identify potential areas of interest for entries, profit-taking, and stop-loss placement by visualizing how far the price has deviated from its medium-term mean (SMA) relative to its recent volatility (ATR).
Key Features:
Central SMA: Plots a customizable Simple Moving Average (default 50-period) as the baseline.
ATR-Based Zones: Calculates and displays distinct zones by adding or subtracting multiples of the ATR (default 10-period) from the SMA.
Color-Coded Visuals: Each zone type is clearly differentiated by color and shading intensity, providing an intuitive visual guide.
Current Zone Label: Displays the specific ATR multiple zone the current price is trading in, offering quick insight into the market's current position relative to the zones.
Zone Breakdown:
The indicator plots the following zones:
Entry Zones (Green Shades):
+1x ATR to +2x ATR above SMA
+2x ATR to +3x ATR above SMA
+3x ATR to +4x ATR above SMA
The green shades become progressively lighter as they move further from the SMA, with the zone closest to the SMA being the darkest green.
Hold Zones (Yellow Shades):
+4x ATR to +5x ATR above SMA (Darker Yellow)
+5x ATR to +6x ATR above SMA (Lighter Yellow)
Sell Zones (Red Shades):
+6x ATR to +7x ATR above SMA
+7x ATR to +8x ATR above SMA
+8x ATR to +9x ATR above SMA
+9x ATR to +10x ATR above SMA
+10x ATR to +11x ATR above SMA
The red shades become progressively darker as they move further from the +6x ATR level, with the +10x to +11x ATR zone being the darkest red.
Stop Loss Zones (Red Shades):
-1x ATR below SMA (Lighter Red)
-1x ATR to -2x ATR below SMA (Darker Red)
How to Use:
Potential Entry Areas: The green "Entry Zones" might indicate areas where the price has pulled back towards the SMA but is still showing strength, or areas where a breakout above the SMA is gaining momentum relative to volatility.
Potential Overbought/Hold Areas: The yellow "Hold Zones" could suggest that the price is becoming extended from its mean, warranting caution or a "hold" approach for existing positions.
Potential Profit-Taking/Sell Areas: The red "Sell Zones" might highlight significantly overbought conditions where the price has moved multiple ATRs above the SMA, potentially signaling areas for profit-taking or considering short entries.
Potential Stop-Loss Areas: The red "Stop Loss Zones" below the SMA can help define areas where a breakdown below the moving average, considering volatility, might invalidate a bullish bias.
Customization:
SMA Length: Adjust the period for the Simple Moving Average (Default: 50).
ATR Length: Adjust the period for the Average True Range calculation (Default: 10).
Show Current Zone Label: Toggle the visibility of the on-screen label that displays the current price's ATR zone.
SMA Line Width: Customize the thickness of the SMA line.
Label Position & Size: Control the placement and text size of the current zone label for optimal chart readability.
Disclaimer:
This indicator is a tool for technical analysis and should not be considered as financial advice. Always use risk management and combine with other analysis methods before making trading decisions.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.