The original Average True Range (ATR) indicator is a technical analysis indicator designed to measure volatility. The higher the ATR the higher the volatility.
The RECON ATR Volatility Percentage indicator calculates the Average True Range (ATR) as a percentage.
Suggested chart timeframes: 1h, 4h and 1D seem to produce the most useful intel but can be used on lower timeframes as well.
The Recon ATR Volatility Percentage can be utilized for identifying trading pairs with a desired amount of volatility, for example deploying a grid trading strategy on pairs that are trending up with a high amount of volatility (say over 50%) might produce desirable results.
It is important to note the ATR does not indicate price direction and can be high in both a rising or falling market.
The ATR Length, Period Look Back Length parameters as well as the color of the columns can be configured per your specifications.
What is the difference between ATR length and lookback period?
RECONTRADER
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@rogaso1993, This indicator combines an ATR & Moving Average. The lookback period is how far into the past the indicator looks when trying to calculate the ATR variable. The length is how far into the past the indicator looks when trying to calculate the moving average variable.
rogaso1993
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@RECONTRADER, thanks for your insight. I am using a grid bot to trade assets I am not interested on holding, I just want to trade them during the consolidation period. Which is usually between 3 days to 15 days. In this case what would be the best settings for this indicator and the OBV indicator?
manny_dacat
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just watched your video and saw this indicator since im into grid trading rn. thanks in advance!
Doctorcloudbase
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Hiya - I assume you are the YouTube Recon Trader? I 'm subscribed, and enjoy your clarity!
Just to ask about this TradingView Indicator therefore, it's somehow calculating the frequency of price-action, by a particular amount ([percentage, or absolute)? Obviously measures of larger moves as 'volitility' are less useful in gridbots, that the frequency at which trades will occur, for grid-spacing at which open orders are 'placed' to create the grid.
We are interesting in the 'fine-grained volatility' within the trading of an asset that maybe gooing sideways on a more macro view, and so the 'big swing' volitility indicators do not apply as well to spotting coin-pairs that may grid profitably. Does this Indicator capture this 'price action wiggle' rather than scoping for larger timeframe movements?
Thanks!
Osirustwits
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@Doctorcloudbase, no the ranges are to wide for what you are looking at
RECONTRADER
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@Doctorcloudbase, Hello, appreciate you watching my YouTube videos. The indicator measures both "fine grained" volatility as well as extreme "big swing" volatility based on the ATR. In addition you can adjust the ATR Length in the settings for the indicator to meet your requirements (default settings work best for my strategies).
Doctorcloudbase
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@RECONTRADER, Hiya. Thank you. I am trying to make sense of the graphic, and the parameters. Is there an explanation of the colours vs size of the bars, and which parameters I can alter to change how 'finely grained' the volatility information is (per Gridbots?). I suspect 'colour' and 'bar-height' actually represent the 'same thing', ie volatility in the 'percentage' terms given, ie <25%, >25%-50%<, >50%-75%<, >75%. However, what do these percentages actually 'mean' - 'pecentage of what'? - value of the stock/coin etc? Can you describe what this percentage actually 'is'? Also, how to vary the parameters such that I would be measuring the 'volatility-per-day', as Bitsgap used to provide, but has just done away with! Many thanks.