ATR with Dual EMA

l’altro ieri

I want to determine whether the market is currently in a sideway (range-bound) 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 two EMAs (Exponential Moving Averages) of ATR as a reference:

A fast EMA (shorter period)

A slow EMA (longer period)

If the fast EMA is above the slow EMA → The market is in a trend.

If the fast EMA is below the slow EMA → The market is in a sideway (range-bound) phase.

This is my definition of market conditions.

l’altro ieri

Note di rilascio

I want to determine whether the market is currently in a sideway (range-bound) 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 two EMAs (Exponential Moving Averages) of ATR as a reference:

A fast EMA (shorter period)

A slow EMA (longer period)

If the fast EMA is above the slow EMA → The market is in a trend.

If the fast EMA is below the slow EMA → The market is in a sideway (range-bound) phase.

This is my definition of market conditions.