ATR Clouds

*Updated with Version 5*

ATR Clouds

The "ATR Clouds" indicator provides a visual representation of the stock's volatility based on the Average True Range (ATR) calculation. It operates by plotting two bands around the closing price of a stock, using the ATR as a measure of volatility.

Features:

ATR Calculation: The Average True Range is a commonly used metric to understand the volatility of an asset. The indicator calculates the ATR over a user-defined period, with the default being 14 periods.

ATR Bands: Using the ATR value, the script defines two bands:
Upper Band: This is calculated by adding the ATR value to the closing price of the stock. It represents a higher volatility boundary.
Lower Band: This is derived by subtracting the ATR value from the closing price. It indicates a lower volatility boundary.

Cloud Visualization: The space between the upper and lower bands is shaded to create a "cloud" on the chart. This cloud gives traders a clear visual cue of the stock's current volatility range. The cloud has an 80% transparency, allowing the underlying price chart to remain visible.

Customization: Users have the ability to adjust the period for the ATR calculation based on their preferences.

Usage:
Traders can use the ATR Clouds indicator to get a sense of the stock's volatility. Wider clouds indicate periods of higher volatility, while narrower clouds suggest lower volatility. This can be beneficial for se