ATR (Average True Range) By Time

2019년 9월 6일

What is ATR By Time?

This premium indicator was inspired by my RVOL By Time indicator. It works on Stocks, Forex, Crypto and most Futures markets. Instead of calculating the ATR by recent price data, it calculates an ATR value for each candle based on that candle’s time of day.

For example, if you set the Lookback setting on this indicator to 14, then instead of calculating the ATR based on the past 14 candles, it will calculate an ATR value based on the past 14 trading sessions for each candle.

This is extremely useful for day traders in particular as it allows you to gauge the average range of candles during certain times of day instead of only by the most recent price action.

It also draws a regular ATR (optional) – so this is essentially an enhanced ATR script that gives you multiple readings on price volatility.

If you are interested, you can purchase access to the script or register for a free trial on my website: ATR By Time Feature Page.

Why Does It Cost Money?

The reason why this is a premium script that requires payment to access is because it took a lot of time, research and development in order to create. The other advantage of charging for it is that it retains exclusivity to only a select few dedicated traders.

By paying the yearly fee you get access to ALL of my premium indicators including lifetime updates and technical support.

If you don’t want to pay for this script then I completely understand and I have plenty of other free indicators and scripts that you might be interested in!

Free Trial

I am a trader myself and so I know how skeptical you might be that this indicator is worth your time and money. That is why I am offering a free trial of this indicator.

All you need to do to initiate your trial is Join My Mailing List/ on my website: https://zenandtheartoftrading.com/indicators/atr-by-time/

How It Works

This script uses a complex formula to calculate ATR values across distant historical bars.

Depending on the timeframe you select it will skip through historical bars to find previous bars from the same time of day. It collects these values then applies the traditional ATR formula to them.

The ATR value is determined by the maximum result of the following three calculations:

- Current high minus the current low
- The absolute value of the current high minus the previous close
- The absolute value of the current low minus the previous close
- Whichever of these three calculations comes out highest, that is your ATR for the given candle.

Once this value is calculated for historical bars the ATR indicator’s reading is typically determined by a 14-period moving average of these individual ATR values. So the ATR reading you see on your screen is an average of the past 14 ATR values.

This means that as markets expand and contract this volatility reading will adapt to the change in candle price ranges.

The difference with the ATR By Time indicator’s calculation formula is that rather than referencing recent bars it references bars based on their time of day.

For example, if you are on the 1-Hour chart and you check the ATR By Time value at 9:00AM with a Lookback period of 14, then the value you see will be the result of the ATR calculation of every 9:00AM 1-Hour candle over the past 14 trading sessions.

You can also choose to enable the ATR moving average in the settings menu if you wish. This will give you a smoothed ATR reading by averaging the current session’s ATR value with previous sessions.

This versatility gives you a sophisticated reading on price volatility which is particularly helpful for day trade setups based around market opens or market closes when volatility tends to spike.

The regular ATR indicator will not account for this on the lower timeframes, but this indicator will!

Examples

Stocks - Heatmap Scheme with regular ATR


Stocks - Price Scheme - No ATR


Stocks - Traffic Scheme - Session Average Line RMA


Stocks - Trigger Scheme - 10 sessions


Forex - RMA


Forex - No RMA


Forex - Normal ATR Stop


Forex - Session ATR Stop

2020년 5월 5일

릴리즈 노트

-
- Added trailing stop price display (Long Stop = Green, Short Stop = Red)
- Created Chart Companion Script

2020년 9월 11일

릴리즈 노트

- Removed this script due to lack of time to maintain it and a lack of interest