Multi-Timeframe ATR Levels█ OVERVIEW
The indicator plots upside and downside levels based on market volatility. By applying the ATR, it projects the ATR boundaries for the selected timeframe.
This tool is ideal for traders who want to factor volatility into their strategy.
█ CONCEPTS
The Average True Range (ATR) measures how much a market typically moves over a given period. This indicator projects that average move as two lines: an upside level above the price and a downside level below it. Together, they define the ATR levels for the period.
█ HOW TO USE
Inside the ATR levels
Price remains within the average range for the period. The levels can help assess whether there is room for a trade and provide additional confluence for taking profit.
Outside the ATR levels
Price exceeds the average range for the period. This can be a place to look for confirmation of mean-reversion or contrarian setups.
█ FEATURES
Multi-timeframe
Set the timeframe that aligns with your trading horizon (e.g., the daily timeframe for intraday trades), or set a higher timeframe for validation. For example, an intraday trader can verify that a daily ATR level remains within the weekly ATR boundaries when trading toward the end of the week.
ATR settings
Configure the length, smoothing, multiplier, and value reference.
Styling
Adjust the appearance to your preferences using options for customizable labels, line style, line thickness, proximity coloring, and overflow color.
Alert
Create a script alert that automatically fires at the first ATR level of each period.
█ NOTES
The underlying True Range (TR) used by the ATR is measured from high to low (including price gaps). Projecting ATR levels must follow the same convention. As new highs or lows are established, the projected levels update accordingly.
Calculation
- Upper level = true low + ATR
- Lower level = true high − ATR
If you are interested in the statistical approach to the ATR, you may also find my ATR Report & Tool . You may also find my free Daily ATR Levels indicator helpful.
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