OPEN-SOURCE SCRIPT
Average True Range with Price MA
ATR with Price Moving Average Indicator
This custom indicator combines the Average True Range (ATR) with a Price Moving Average (MA) to help traders analyze market volatility in percent to the price.
Key Components:
ATR/Price in Percent
Purpose: This ratio helps traders understand the relative size of the ATR compared to the current price, providing a clearer sense of how significant the volatility is in proportion to the price level.
Calculation: ATR is divided by the current closing price and multiplied by 100 to express it as a percentage. This makes it easier to compare volatility across assets with different price ranges.
Plot: This is plotted as a percentage, making it easier to gauge whether the volatility is proportionally high or low compared to the asset's price.
Usage:
This indicator is designed to help identify the most volatile tokens, making it ideal for configuring a Grid Bot to maximize profit. By focusing on high-volatility assets, traders can capitalize on larger price swings within the grid, increasing the potential for more profitable trades.
Features:
Customizable Smoothing Method: Choose from RMA (Relative Moving Average), SMA (Simple Moving Average), EMA (Exponential Moving Average), or WMA (Weighted Moving Average) for both ATR and the Price Moving Average.
Dual Perspective: The indicator provides both volatility analysis (ATR) and trend analysis (Price MA) in a single view.
Proportional Volatility: The ATR/Price (%) ratio adds a layer of context by showing how volatile the asset is relative to its current price.
This custom indicator combines the Average True Range (ATR) with a Price Moving Average (MA) to help traders analyze market volatility in percent to the price.
Key Components:
- Average True Range (ATR)
- Price Moving Average (MA)
- ATR/Price in Percent
ATR/Price in Percent
Purpose: This ratio helps traders understand the relative size of the ATR compared to the current price, providing a clearer sense of how significant the volatility is in proportion to the price level.
Calculation: ATR is divided by the current closing price and multiplied by 100 to express it as a percentage. This makes it easier to compare volatility across assets with different price ranges.
Plot: This is plotted as a percentage, making it easier to gauge whether the volatility is proportionally high or low compared to the asset's price.
Usage:
This indicator is designed to help identify the most volatile tokens, making it ideal for configuring a Grid Bot to maximize profit. By focusing on high-volatility assets, traders can capitalize on larger price swings within the grid, increasing the potential for more profitable trades.
Features:
Customizable Smoothing Method: Choose from RMA (Relative Moving Average), SMA (Simple Moving Average), EMA (Exponential Moving Average), or WMA (Weighted Moving Average) for both ATR and the Price Moving Average.
Dual Perspective: The indicator provides both volatility analysis (ATR) and trend analysis (Price MA) in a single view.
Proportional Volatility: The ATR/Price (%) ratio adds a layer of context by showing how volatile the asset is relative to its current price.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.