timwest

Average True Range %

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study(title="Average True Range %", shorttitle="ATR%", overlay=false)
length = input(14, minval=1)
plot(sma(tr*100/close[1], length), color=red)
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
Thanx for the script! I am also watching SLV. Here's a nice chart as well. BTW, i have a bone to pick with Tradingview, it only shows selective charts on the right column or in search, while there are more great charts. I don't even see this chart anywhere on the right side even though i am subscribed to the trader. If you can advise them to revise the selection, would be great!
SLV bouncing on bottom
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2use...your on the right path...keep doing what your doing...the computer picks charts to show taking in to account the users rating...which you get a good rating by posting consistently good charts....

You'll get there in no time
+3 Reply
2use ChrisMoody
I got that actually, but some ticks have 0 charts listed for them and i know and seen some charts for them exist. I do understand that the best, most viewed stand out - but it kinda beats the purpose. Some don't get viewed as they are not even shown. I would suggest having 2 options - Top charts and All charts. I myself build my own, but i do get inspired or guided at times by ideas of different origin. Just thought to give some feedback :)
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I just re coded the website per your request...If you go to the Home Screen....at the top you'll notice 3 drop down menus....Look at the one in the middle...it defaults to suggested...but you can change it to ALL...
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2use ChrisMoody
Wow....that was extremely fast and productive. I'm surprised! A big thank you!
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2use 2use
And it works :) I hope it was not a miss of mine and it was a real fix =) tradingview scores another goal!
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Please add a comment… Positive feedback and constructive criticism are important to authors and the commu
bludolphin- to 2use/ I am still pretty new to tech analysis, could you just tell me how you arrived at those targets please. Thanks

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Regarding ATRs: Maybe you can give a brief for the youngsters on how do you calculate the risk to ATR (i've seen you note that in some of your charts)
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Tim...it's a little late for you to be up posting charts....I like it....

WOWWW....Did you just post a code??? Your already the "Top Dog"...and now you rooming in to our 'little space' and take us out...

Rule #1 - If your going to post a 3 line code...you've got to copyright it and throw your name in the Title...
//Created and Copyrighted by....Yes Me..."Tim West"
//You may use this code I've generously shared for your personal use. Do not distribute without my written approval
study(title="_TimWest_Proprietary_Average True Range %", shorttitle="_TimWest_ATR%", overlay=false)
length = input(14, minval=1, title="The Tim West Proprietary # of Bars Used In Calculation")

at_Pct = sma(tr*100/close, length)
pctVolat = at_Pct >= 3
pctMid = at_Pct > 1.5 and at_Pct < 3
pctLowVol = at_Pct < 1.5

col = pctVolat ? red : pctMid ? yellow : pctLowVol ? fuchsia : na

plot(at_Pct, title="The TimWest Special ATR% Line", style=line, linewidth=3, color=col)
plot(.5, title="The TimWest Showing Off My SKILLZ Plot", style=columns, linewidth=4, color=col)
bgcolor(pctVolat ? red : pctMid ? yellow : pctLowVol ? fuchsia : na, transp=85)

Tim your new code looks almost "3-D"...How do you do it...

snapshot
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timwest PRO ChrisMoody
Chris! Awesome work!! So impressive looking!
How much do you charge for programming time??
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timwest PRO ChrisMoody
You crack me up Chris!
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timwest PRO ChrisMoody
Can you colorize using PERCENTILES of the past 52-weeks range?
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Top 25% = RED, 2nd quartile = ORANGE, 3rd quartile = yellow, Bottom quartile = Green
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All you had to do is ask...Percentiles is my specialty...just had no ideal what levels you were looking at...and what look back period you would consider important...Got it now...
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gomuge PRO ChrisMoody
Tim and Chris, thanks for your amazing work to both of you. Chris, did you manage to make the changes with 52 week range percentiles as Tim asked ? If so, I just don't know where to find it.
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LazyBear PRO ChrisMoody
+1 Very nice!
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timwest PRO LazyBear
Thanks LazyBear
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I also got into SLV using some of Chris's other indicators and some that he has customer scripted for me.

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Thanks again Chris, you Rock!
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I was looking at the RM oscillator and while its highly probably that I do not know how to use it. You said, that when RM hits a new high before the price does this it would be a long entry or change in trend.
I used it on the GDX chart and judge for yourself. I also added an A/D line for comparison. While the chart and a simple trendline shows a breakout on the upper side, the RM is still hanging down as a lower low.
snapshot
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ChrisMoody PRO sublimares2
I think Tim actually sleeps at night...unlike some of us...So we shall see...How'd you like that cool 3D looking indicator he coded though...clearly he has skills
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2use ChrisMoody
Im snatching it :D
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sublimares2 ChrisMoody
Maybe a 3C (C for colors) like in 3 colors looking indicator but not a 3D. Its just a simple 2D application.
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littleriver sublimares2
Hi sublimare, I too have been looking closely at Tim's Trend chart using RM and CCI. Here is how I see GDX using Tim's method. As I understand it, we are looking for new highs. At the same time we are looking for oversold conditions on CCI that are breaking up. These are our bullish opportunities. I used a daily chart for my example since I do not have access to 5 days . Not sure Tim's system even works on daily . How about it Tim? But looking at my chart one can see RM did make a new high while price did not just as Tim describes. So far we have had one false signal on this daily and one good one.
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sublimares2 littleriver
Tnx- I fail to see what he sees:) On CCI I detect only an usual bullish divergence- nothing fancy or new. I gave up on RM to understand it.
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timwest PRO sublimares2
One way to read it is to see that Range Movement makes a new 2-month high and then buy dips to oversold as long as RangeMovement doesn't make a two-month low. You can also buy turn-ups from oversold as in the two areas that are circled on the chart above.
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timwest PRO littleriver
Yes - The red line you have labeled is the natural target as the range-movement line is telling you that it is at levels consistent with a movement back to those levels. That would be a logical target, your red-line at 30.71 in the chart above.
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timwest PRO littleriver
It works with daily - in fact I designed it with the daily time frame.
+1 Reply
timwest PRO sublimares2
I didn't mean to put up my proprietary "range movement" indicator, but I realize I did use to prove a point in the gold market, that it was having an easier time rallying. So, before I make it completely private, I'd suggest grabbing it. It is a powerful indicator. But it helps to understand what it is and why it works and what it tells you. First, I can say that it works best in widely followed markets. GDX, I'd suggest isn't widely followed. GDX is a different market and might not exhibit the same pattern since it is a basket of gold stocks. The price of gold, however, is a market that the world watches closely and therefore thousands of traders monitor various SUPPORT and RESISTANCE levels throughout the day that ultimately guides their mood. You see traders calculate pivot support, 1st support, 2nd support, 1st resistance and 2nd resistance each morning and those are general levels to guide trading, absent any other technical analysis or knowledge. Essentially, 2nd support and 2nd resistance are calculated by adding and subtracting the previous day's range from the previous day's close. Therefore, when the market goes above 2nd resistance it is considered bullish and the market mood shifts up. If the market goes below 2nd support, the mood shifts bearish as the market is overcome by sellers and driving the price down. This indicator is a way to keep track of all of the "moods" that the market makers and traders have during the course of a market move. If the market goes up by an equivalent of 1-day's previous day range, and doesn't go down at all during the day, that would give a +1 reading to the market, or +1 Range to the cumulative sum. Over time, oddly enough, there are AMAZING things that happen. You will see Elliott Waves that are far more clear than you will find anywhere else and SECONDLY, you will see that this line leads the price, often by a long lead time in time and price. What seems to happen is that the mood of the market makers shifts over time as the market gyrates and buyers emerge to accumulate shares, pushing the R-line up silently amongst the noise. The market makers detect the buyers and begin to accumulate shares to have available to the pool of buyers they have detected and the price begins its march up once the sellers are sufficiently out of the way. It takes time, sometimes, and the bigger the market, the more of this grinding away of supply that it requires before a big move. Clearly this pattern will not always emerge from just this one indicator - so it isn't the "HOLY GRAIL" that all of us hope for, but it DOES provide for very low risk, very powerful trade setups that can help us all make money.
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I programmed this in 1988 after visiting the CBOT for several days to see if I wanted to be a floor trader. I programmed it in the powerful BOMAR Machine, later called Instinet Research & Analytics, and called it Ease of Movement or EOM. I later found out that others had used that term for their analytical tool, so I have given it other names, like POLR for PATH OF LEAST RESISTANCE, and now "RANGE MOVEMENT" which is a more pure way to describe what it is measuring. The other name I had was "Net Range Movement" since I net-out the UP-movement and the DOWN-movement to get a "net range". The key to this too is that it doesn't incorporate the closing price. It only concerns itself with how much can a market move away from yesterday's close, both up and down. If there are strong sellers, they may let the market move up a little before they begin to sell, but it wont move up much. If there are significant buyers, they may let the market come in a little so as not to "show their hand" before they begin buying, but by the end of the session, the market makers will detect the real customer buying and then push the market up to front run their order for the next session or to get them to step up their price to test them for how eager they are to buy their position. This is how the market works and this is the indicator that helps us SEE what is going on at that level in the marketplace. I worked on an institutional trading desk for 4 1/2 years seeing this process unfold daily. This indicator helps me see at a core level what is happening in a given market and gives me a stronger sense of what is going on under the hood of the market. If you couple this method together with the TIME AT MODE analysis, then you really get INTO a chart.
+4 Reply
Thank you Tim! Your insight to the market and willingness to share is more than generous. Very much appreciated! It took a couple of reads but i believe I understand. I do see the sort of price action you describe in equities as I watch the market today . So, I see the truth and value in what your sharing . Thanks LR
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timwest PRO littleriver
I will be putting all of this into a book someday - so - you saw it here first! Thanks for the reply. And sorry you had to read it twice to get the info out of it.
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I think it was more of a limitation on my part than your ability to compose. I sincerely hope you do write it a book and may it be a very profitable one too.
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2use timwest
I need to redigest all the info as i am a recent one here, and this seem interesting. I refrain from asking too many questions to not bore people with myself, so please dont hide the range movement and use it on your charts. I must say you do have a lot of ideas outside the book, it takes some time to understand and get used to them. Btw, is there anyone else using your methods here?
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I welcome questions - and look forward to seeing what questions you have.
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I usually run a drive test on the new scripts and see if there is accuracy and something more behind then just a plotted line. Yours is no exception and I wanted to understand it before I go to the next one. I use it on a BAC chart since I agree with you vs. GDX and the lack of accuracy on it. I plotted the RM behind the price ( as we all noticed TV has a problem with scaling and plotting behind the price) but I can see what you mean with the price range. At some point it can give a long signal with a reasonable entry but on other side it also gives false signals or late entries. Somehow it reminds me of your MA1 offset 63 behind the price- same thinking/ roots behind RM. Very much appreciate your sharing.
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timwest PRO sublimares2
Excellent examples - well diagrammed - Nicely done. You can also see that when the price breaks out without the range-movement going to a new high, that it can often be a sign of trouble. That in reality there was distribution ahead of the breakout that wont be followed-through on. Note that at the highest highs of the rally in BAC.
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Thanks for the explanation. Most of it went over my head, TBH, but will keep reading this again and again to see if it finally clicks :)
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timwest PRO LazyBear
I'll work on my explanation - probably if we were talking, I could explain it better. Maybe I'll do a video about the construction of the indicator and why I think it works and what it tells us.
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2use timwest
That would be awesome actually, probably the best way and closes to talking about it.
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bludolphin to T West- I'm a newbie so I don't see how these ATR at the bottom help. Could you give brief explanation if you are not too busy please. Thanks
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timwest PRO bludolphin
ATR% is just a measurement of risk or volatility instead of just ATR measured in points.
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The thread here has mostly been about the "Range Movement" line and how to interpret it and how to trade from it. The ATR is just used to set an initial stop loss on the position to assist in creating your position size. You take a % of your account that you will risk on the trade, divide it by a multiple of the ATR (I recommend 3) and it will give you how much to trade. You can trail your stop by that or use other techniques, but at least it will give you the initial position size for your trade.
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very interesting.. but how to have the code for RANGE MOVEMENT indicator. it seems to be interesting and more easy to follow?
thank you Tim!!
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timwest PRO aryahi29
If you select the chart and "make it mine" then you will see the code embedded in the chart.
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