Average True Range Percentage (ATRP)

2020년 1월 2일

ATR measures volatility, but you can't compare one instrument vs. another with it because the ATR value will be different depending on the price of the instrument. I went searching for something like ATR but with percentages, so you could compare one stock vs. another to find who is more volatile and found this.

It was exactly what I was looking for, so decided to re-create it in TradingView. Enjoy!

Description
Average True Range Percent (ATRP) expresses the Average True Range (ATR) indicator as a percentage of a bar’s closing price.

How this indicator works

• ATRP is used to measure volatility just as the Average True Range (ATR) indicator is. ATRP allows securities to be compared, where ATR does not.
  
• ATR measures volatility at an absolute level, meaning lower priced stock will have lower ATR values than higher price stocks. ATRP displays the indicator as a percentage, to allow for securities trading at different prices per share to be compared.
  

Calculation
ATRP = (Average True Range / Close) * 100

2021년 2월 24일

릴리즈 노트

Added a moving average to this script to remove some of the noise you get with the normal ATRP display. This should make it easier to compare the average volatility of a stock relative to other stocks easier.

2021년 3월 17일

릴리즈 노트

Added the ability to change the timeframe that this indicator looks at. The way I plan on using this is to have my chart set to intraday time frames but have a visual on what the daily Average True Range Percentage is. This will give a better visual for comparing stocks relative to one another on how volatile they are over a daily range instead of how volatile they are just on the intraday time frame.