Average True Range Bands and Their Configuration

Summary

The document describes an Average True Range Bands indicator that plots bands based on average true range. It identifies four configuration areas: the ATR calculation period, band deviation or channel width, the price mode used for calculations, and whether to display a deviation line. The price mode can use closing prices or high and low prices.

This is a feature and settings description rather than a complete trading method. It does not specify formulas beyond the ATR basis, parameter recommendations, how band touches should be interpreted, or how signals might be used for entries and exits. No historical test, market example, or performance results are supplied, so the usefulness of particular settings remains unevaluated.

Key ideas

• The indicator plots bands derived from average true range.
• The ATR period and deviation setting control aspects of the band calculation and width.
• Calculations can use closing prices or high and low prices.
• A deviation line can optionally be displayed.
• No trading rules or performance evidence are provided.

Tags

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