AG ATR Impulse
This is an indicator we built to look for "Impulse" moves in the markets. It uses Average True Range (ATR) calculations. We use a fastATR setting of 1 to show the current candle/period's ATR. The black line is a second, slowATR, that we use to see whether the fastATR is higher than the slowATR. If so, the bar is green, if not, grey.
The background is coloured by a "Change Factor" that can be customised. It essentially uses more ATR calculations to suggest whether to be looking for longs (green background) or shorts (red background). Setting the Change Factor lower than default to 1 makes the underlying calculations more sensitive, and thus, the background filter will change more often, but the signal will have less accuracy. Setting the Change Factor higher than default to, say, 3, will make the underlying calculations less sensitive, and thus, the background filter will change less often, but the signal will be more accurate.
In the chart example attached, I have included some trade ideas that could have been taken using this indicator to give you an idea of how to use the indicator.
The background is coloured by a "Change Factor" that can be customised. It essentially uses more ATR calculations to suggest whether to be looking for longs (green background) or shorts (red background). Setting the Change Factor lower than default to 1 makes the underlying calculations more sensitive, and thus, the background filter will change more often, but the signal will have less accuracy. Setting the Change Factor higher than default to, say, 3, will make the underlying calculations less sensitive, and thus, the background filter will change less often, but the signal will be more accurate.
In the chart example attached, I have included some trade ideas that could have been taken using this indicator to give you an idea of how to use the indicator.