The True Range Indicator is a sophisticated screener meticulously developed to bolster your trading execution by presenting an exceptional understanding of the market direction. The centerpiece of this instrument is a distinctive candle configuration depicting the Average True Range (ATR) and the Bear/Bull range. However, it traverses beyond the conventional channels to offer specific market settings to boost your trading decisions.
Broadly, the indicator offers five dynamic settings:
The Bear/Bull Range outlines the ATR for each candle type - bearish and bullish - and then smartly opts for the pertinent one based on the prevalent market circumstances. This feature aids in comparing the range of bullish and bearish candlesticks, which deepens your understanding of the price action and volatility.
The Bearish Range isolates and computes the ATR for bearish candles solely. Utilizing this option spots the bear-dominated periods and provides insights about potential market reversals or downward continuations.
Opposite to the Bearish Range, the Bullish Range setting tabulates the ATR exclusively for bullish candles. It assists in tracking the periods when bulls control, enlightening traders about the possibility of upward continuations or trend reversals.
The Average Range provides an unbiased measure of range without prioritizing either bull or bear trends. This model is ideal for traders looking for a holistic interpretation of market behavior, regardless of direction.
Cumulative Average Range
Equally significant is the Cumulative Average Range which calculates the aggregate moving average of the true ranges for an expressed period. This setting is extremely valuable when evaluating the long-term volatility and spotting potential breakouts.
Dual Candle Configuration
Going a step ahead, the True Range Indicator uniquely offers the possibility to incorporate more than one candle estimate on your screen. This ensures simultaneous analysis of multiple market dynamics, thereby enhancing your trading precision multifold.
In essence, the True Range Indicator is an indispensable companion for traders looking to not only leverage market volatility but also make educated predictions. Equipped with an array of insightful market settings and the ability to display dual candle estimates on-screen, you can customize the functionality to suit your unique trading style and magnify your market performance dramatically.
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.