ATRNorm: Normalizing Volatility Measures to Detect Flat Markets

Summary

ATRNorm is described as a normalized Average True Range indicator intended to identify periods of relatively flat price action. Its inputs include the lookback period, a smoothing period, the type of series to normalize, a normalization window, volume type, and a horizontal display shift. The same normalization approach can be applied to other series, including tick volume and standard deviation, by changing the selected value type.

The document identifies the indicator's original implementation in MQL4 and notes that the MQL5 version relies on an external smoothing library. It does not explain the precise normalization formula, how to interpret indicator thresholds, or how the indicator was validated across markets and timeframes. No trading rules or performance results are presented. Thus, the material is a brief description of an indicator's purpose and configuration rather than a complete strategy; users would need to inspect the implementation and test whether its flat-market readings are useful for their instruments and data.

Key ideas

• ATRNorm rescales Average True Range to help identify flat price areas.
• The normalized input can be changed to measures such as tick volume or standard deviation.
• Its settings control lookback, smoothing, normalization window, volume source, and chart shift.
• The description does not provide a formula, signal thresholds, or validation results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.