ATR multiple from High & Low

A simple numerical indicator measuring ATR multiple from recent 252 days high and low.

ATR multiples from high (and low) are used as a base in many systematic trading and trend following systems. As an example many systems buy after a 2.5–4 ATR multiple pullback in a strong stock if the regime allows it. This would then be paired with an entry tactic, for example buy as it recaptures the a pivot within the upper range, a MA or breaks out again after this mid term pullback/shakeout.

This indicator uses a function which captures the recent high and low no matter if we have 252 bars or not, which is not how standard high/low works in Tradingview. This means it also works with recent IPO:s.

I prefer to overlay the indicator in one of the lower panes, for example the volume pane and then right click on the indicator and select Pin to scale > No scale (fullscreen).