Normalized Average True Range

This is a Normalized ATR, which means it displays ATR as a percentage instead of absolute price. For example, a value of 1 indicates a true range of 1% in a given period.

This indicator creates a moving average of the volatility of a product going back X number of periods and is useful for deciding what to trade. For example, if used on a daily chart , one product displays a value of 4 you can reasonably expect it to have larger price swings and movement compared to another product that displays 1.

It does not predict direction, rather the size of moves.
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.


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