Elder Force Index With ATR Channels

Dap-Trade Uppdaterad   
Inspired by the new version of the "Force Index" announced by Dr. Alexander Elder a few years ago - "Elder Force Index With ATR Channels".

Unfortunately original version of script only works on MetaTrader platforms, so this is an attempt to
implement this great idea on TradingView too.

Here is original script explanation by Dr. Elder himself
Adding Average True Range (ATR) channels to Force Index had been suggested by Kerry Lovvorn.
Adding these channels turns Force Index into an excellent tool for identifying intermediate tops and bottoms.
Force Index with ATR channels does not catch all turns, but the ones it identifies deserve very serious attention.

Note: the word “true” in Average True Range refers to dealing with price gaps. Since there are no gaps in Force Index, here ATR is the same as the Average Range.

Whenever the Force Index rises above or falls below its 3-ATR channel, it signals that the ticker has reached an area of an unsustainable extreme.
That’s where rallies and declines become exhausted and prices tend to reverse. This is one of very few tools that are equally efficient in calling both top and bottom areas.

In our experience, these signals work especially well on the weekly charts.
Of course, users are welcome to experiment with them in any timeframe.

One possible option is to use the new Force Index with ATR Channels on your weekly charts and the original Force Index on your daily chart.

- The Force Index is drawn in blue with a thick line.
- The Averaged Force is a solid red line.
- The upper and lower bands at 1 ATR are drawn in dotted lines.
- The upper and lower bands at 2 ATR use dashed lines.
- The upper and lower bands at 3 ATR are solid gray lines.
- Red dots placed above the plot when the EMA of Force Index rises above the 3-ATR channel.
- Green dots placed underneath the plot when that EMA declines below the 3-ATR channel.

***** Original script programmed to truncate values at the 4-ATR level to prevent any extreme value from flattening the rest of the plot -
- I'm not yet implemented this feature here - hopefully coming soon.
Elder Force Index With ATR Channels v2

- Improved calculation algorithm of ATR bands to most accurate with original
** Now the bands calculating and displaying exactly as authentic "EFI with ATRs" indicator version

- Added Show/Hide options for: ATR bands, ATR Signals, EMA and Zero Line
- Screenshort example updated
Signals relocated from third ATR band to EFI line itself
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