johnswede

Average True Range Bands

Average True Range Bands

The 30-day Average True Range is useful in Futures and Forex trading for placing stop orders for entry.

In the example above, a trader may want to initiate a Short position on a break below the support trendline.

A good place to enter this trade would be a price break below the support trendline minus 50 to 100% of the current ATR value.

ATR Bands provides a useful visual overlay of the current ATR value above and below the current price to speed up order entry decisions.
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 a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?

Comments

Any instructions how to install it on mt4?
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johnswede marbor889
@marbor889, these scripts only work on Trading View.
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