ATR% Multiple from Key Moving Average

2024年11月30日

This script gives signal when the ATR% multiple from any chosen moving average is beyond the configurable threshold value. This indicator quantifies how extended the stock is from a given key moving average.

A lot of traders use ATR% multiple from 10DMA, 21EMA, 50SMA or 200SMA to determine how extended a stock is and accordingly sell partials or exit. By default the indicator takes 50SMA and when the ATR% multiple is greater than 7 then it gives the signal to take partials. You can back test this indicator with previous trades and determine the ideal threshold for the signal. For small and midcaps a threshold of 7 to 10 ATR% multiples from 50SMA is where partials can be taken while large caps can revert to mean even earlier at 3 to 5 ATR% multiples from 50SMA.

You can modify this script and use it anyway you please as long as you make it opensource on TradingView.

12月9日

發行說明

Updated the script to calculate the ATR% multiple based on high of the candle rather than close. This makes sure that the indicator flashes the price had reached the target ATR% multiple from key moving average even if it sells off later; so that you will be mindful that the price met your target ATR% multiple during the session.

12月9日

發行說明

Price source selection through input - high, low, open, close or other system defined sources can now be selected. It is defaulted to high so that the signal will flash even if stock is sold off after the target ATR% multiple is hit during the session.