What Is the Average True Range (ATR)? The average true range (ATR) is a technical analysis indicator, that measures market volatility by decomposing the entire range of an asset price for that period.
The true range indicator is taken as the greatest of the following: current high less the current low; the absolute value of the current high less the previous close; and the absolute value of the current low less the previous close. The ATR is then a moving average, generally using 14 days, of the true ranges.
This script is an especial request of a TradingView user. Shows 5 levels based on ATR daily, plotted in wherever timeframe you are using:
level 1: prv day ATR + prv day close level 2: prv day ATR + prv day high level 3: level 2 - prv day ATR level 4: prv day close - prv day ATR level 5: prv day low - prv day
Only show the levels if you are in a timeframe daily or lower than daily.
Release Notes
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- Converted to Pine Script Version 5 - Added 2 fills (as requested by a user of the indicator), one between L1 level and daily open, other between L4 and daily open