Rolling ATR Momentum - Enhanced

ATR Rolling Momentum Indicator – User Manual

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🔍 Overview
The ATR Rolling Momentum Indicator is a dynamic volatility tool built on the Average True Range (ATR). It not only tracks increasing or decreasing momentum but also provides early warnings and confirmation signals for potential breakout moves. It’s especially powerful for futures and options traders looking to align with expanding price action.

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📊 Core Components

✅ ATR Delta (Rolling ATR)
- Definition: Difference between current ATR and past ATR (user-defined lookback).
- Use: Tells whether volatility is expanding (positive delta) or contracting (negative delta).
- Visual: Green line for rising momentum, red for declining.

🟣 ATR Delta Slope
- Definition: Measures acceleration in momentum.
- Use: Helps identify early signs of breakout buildup.
- Visual: Purple line. Watch for slope turning up from below.

🟡 Volatility Squeeze (Yellow Dot)
- Definition: Current ATR is significantly lower than its 20-period average.
- Use: Indicates the market is coiling—possible breakout ahead.

🔼 Momentum Start (Green Triangle)
- Definition: ATR Delta slope turns from negative to positive.
- Use: Early warning to prepare for volatility expansion.

🔷 Breakout Confirmation (Blue Label Up)
- Definition: ATR Delta exceeds its high of the last 10 candles.
- Use: Confirms volatility breakout—trade opportunity if direction aligns.

🟩/🟥 Background Color
- Green Background: Momentum rising (positive ATR delta)
- Red Background: Momentum falling (negative ATR delta)
- Yellow Tint: Active squeeze zone

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✅ How to Use It (Futures/Options Focus)

Step-by-Step:
1. Squeeze Detected (Yellow Dot) → Stay alert. Market is coiling.
2. Green Triangle Appears → Momentum is starting to rise.
3. Background Turns Green → Confirmed rising momentum.
4. Blue Label Appears → Confirmed breakout (enter trade if trend aligns).

Directional Bias:
- Use your main chart setup (price action, EMAs, trendlines, etc.) to decide direction (Call or Put, Long or Short).
- ATR Momentum only tells you how strong the move is—not which way.

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⚙️ Inputs & Settings
- ATR Period: Default 14 (core volatility measure)
- Rolling Lookback: Used to calculate delta (default 5)
- Slope Length: Used to measure acceleration (default 3)
- Squeeze Factor: Default 0.8 — lower = more sensitive squeeze detection
- Breakout Lookback: Checks ATR delta against last X bars (default 10)

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🧠 Pro Tips
- Works great when paired with EMA stacks, price structure, or breakout patterns.
- Avoid taking trades based only on squeeze or momentum—combine with chart confirmation.
- If background turns red after a breakout, it may be losing momentum—book partials or tighten stops.

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🧭 Ideal For:
- Nifty/BankNifty Futures
- Option directional trades (call/put buying)
- Index scalping and momentum swing setups

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Use this tool as your volatility compass—it won't tell you where to go, but it'll tell you when the wind is strong enough to move fast.

End of Manual