ATR Candles

Average true range (ATR) is a market volatility indicator used to show the average range prices swing over a specified period.

The ATR Candles indicator has two primary functions. First, it measures a short-term ATR against a longer-term ATR to show if volatility is contracting or expanding.
Secondly, this indicator goes a step further by highlighting individual candles that exceed or fall below user selected ATR thresholds.

Moments of volatility contraction often lead to expansion and vice versa. By using the ATR Candles traders can identify potential imminent breakouts/breakdowns or healthy pullbacks vs a volatile correction.

Indicator Features

• Selectable ATR lengths
  
• Selectable threshold limits (1 contraction / 2 expansion)
  
• Calculate current candles range from open / previous close / daily range
  
• Custom colors
  
• Show or hide every element
  

Versionsinformation:

Added option to see ATR Range Boxes.

If there is a candle that meets the requirements for an Expansion Candle there is now the option to draw a box around the range selected from your ATR source. Box will continue to extend until price breaks the top or bottom of the range.

You can also chose the maximum number of boxes to see on the chart, to only see the last box set this number to 1.

Modified TradingView's Gap indicator for the methods to create and manage the boxes.

Versionsinformation:

Removed the boxes from the last update to just be simple lines plotted at the open and closing price the latest expansion candle.

Versionsinformation:

Code clean up from last update.

Versionsinformation:

Update to give user choice between ATR or ADR.