ATR Channel

The ATR Channel plots an upper and lower channel based on the close, plus or minus, the Average True Range times a user defined factor. The user may change the period length, shift number and multiplier factor. This indicator’s definition is further expressed in the condensed code given in the calculation below.

How To Trade Using the ATR Channel

No trading signals are calculated for this indicator.

How To Access in MotiveWave

Go to the top menu, choose Study>Overlays>ATR Channel

or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.

Important Disclaimer: The information provided on this page is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security. Please see our Risk Disclosure and Performance Disclaimer Statement.

Calculation

//period = user defined, default is 14
//shift = user defined, default is 0
//multiplier = user defined, default is 2.5
//sma = simple moving average
//LT = less than

 //Calculate top and middle lines 
for(int i = period; i LT size(); i++) 
      atr = sma(i,  period, "TrueRange");
      close = getClose(i);
      top = round(close + (atr*mult));
      bottom = round(close - (atr*mult));
      Plot1: plot(i+shift, top);
      Plot2: plot(i+shift, bottom);
endFor