+ ATR Table and BracketsHi, all. I'm back with a new indicator—one I firmly believe could be one of the most valuable indicators you keep in your indicator toolshed—based around true range.
This is a simple, streamlined indicator utilizing true range and average true range that will help any trader with stoploss, trailing stoploss, and take-profit placement—things that I know many traders use average true range for. It could also be useful for trade entries as well, depending on the trader's style.
Typically, most traders (or at least what I've seen recommended across websites, video tutorials on YouTube, etc.) are taught to simply take the ATR number and use that, and possibly some sort of multiplier, as your stoploss and take-profit. This is fine, but I thought that it might be possible to dive a bit deeper into these values. Because an average is a combination of values, some higher, some lower, and we often see ATR spikes during periods of high volatility, I thought wouldn't it be useful to know what value those ATR spikes are, and how do they relate to the ATR? Then I thought to myself, well, what about the most volatile candle within that ATR (the candle with the greatest true range)? Couldn't knowing that value be useful to a trader? So then the idea of a table displaying these values, along with the ATR and the ATR times some multiplier number, would be a useful, simple way to display this information. That's what we have here.
The table is made up of two columns, one with the name of the metric being measured, and the other with its value. That's it. Simple.
As nice as this was, I thought an additional, great, and perhaps better, way to visualize this information would be in the form of brackets extending from the current bar. These are simply lines/labels plotted at the price values of the ATR, ATR times X, highest ATR, highest ATR times X, and highest TR value. These labels supply the actual values of the ATR, etc., but may also display the price if you should choose (both of these values are toggleable in the 'Inputs' section of the indicator.). Additionally, you can choose to display none of these labels, or all five if you wish (leaves the chart a bit cluttered, as shown in the image below), though I suspect you'll determine your preferences for which information you'd like to see and which not.
Chart with all five lines/labels displayed. I adjusted the ATRX value to 3 just to make the screenshot as legible as possible. Default is set to 1.5. As you can see, the label doesn't show the multiplier number, but the table does.
Here's a screenshot of the labels showing the price in addition to the value of the ATR, set to "Previous Closing Price," (see next paragraph for what that means) and highest TR. Personally, I don't see the value in the displaying the price, but I thought some people might want that. It's not available in the table as of now, but perhaps if I get enough requests for it I will add it.
That's basically it, but one last detail I need to go over is the dropdown box labeled "Bar Value ATR Levels are Oriented To." Firstly, this has no effect on Highest ATR, Highest ATRX, and Highest TR levels. Those are based on the ATR up to the last closed candle, meaning they aren't including the value of the currently open candle (this would be useless). However, knowing that different traders trade different ways it seemed to me prudent to allow for traders to select which opening or closing value the trader wishes to have the ATR brackets based on. For example, as someone who has consumed much No Nonsense Forex content I know that traders are urged to enter their trades in the last fifteen minutes of the trading day because the ATR is unlikely to change significantly in that period (ATR being the centerpiece of NNFX money management), so one of three selections here is to plot the brackets based on the ATR's inclusion of this value (this of course means the brackets will move while the candle is still open). The other options are to set the brackets to the current opening price, or the previous closing price. Depending on what you're trading many times these prices are virtually identical, but sometimes price gaps (stocks in particular), so, wanting your brackets placed relative to the previous close as opposed to the current open might be preferable for some traders.
And that's it. I really hope you guys like this indicator. I haven't seen anything closely similar to it on TradingView, and I think it will be something you all will find incredibly handy.
Please enjoy!
