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Comparing Short- and Long-Period ATR to Spot Volatility Changes

Article MQL5 code base
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Summary

The ATR Dual indicator displays two Average True Range series with different averaging periods. Its default setup uses a 14-period ATR as a dotted reference line and a one-period ATR as a histogram, allowing the current bar’s range-based volatility to be viewed against a longer averaging window.

The document interprets the short-period histogram approaching the longer-period line as a sign that current-bar volatility differs substantially from the longer-period average. This is an indicator description rather than a complete trading strategy: it gives no entry or exit rules, asset class, historical test, or evidence about predictive value. ATR measures range and does not indicate price direction, so the display alone does not establish whether a market move should be bought or sold.

Key ideas

  • The indicator plots two ATR measurements that use different averaging periods.
  • Its defaults compare a one-period ATR histogram with a 14-period dotted ATR line.
  • Movement of the short-period reading toward the longer-period reference highlights a volatility difference.
  • The document provides no directional signal, trading rules, or performance evidence.

Tags

VolatilityTechnical indicatorsStatistics

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