Double ATR Trend Indicator with a Longer-Period Trend Line

Summary

This indicator proposal applies Average True Range twice to closing prices to create a smoothed line called DATR. It calculates a second line, DATR2, using twice the selected period to represent a broader trend. The default period is 15 bars, and the author suggests plotting both lines alongside a moving average for comparison. The code colors each line according to whether its current value is rising or falling. The longer-period line is also proposed as a possible moving stop, though no entry, exit, or position-sizing rules are specified.

The author describes the indicator as smoother than regular averages with the same period and says it is better suited to trending conditions than to choppy, sideways markets. These are qualitative claims; the post presents no quantified comparison, backtest, or evidence of predictive value. The implementation also depends on how the platform defines applying Average True Range to a close-price series, so results may vary across platforms. Traders would need to define how the lines affect decisions and test behavior across different market regimes before relying on them.

Key ideas

• DATR applies an Average True Range calculation twice to closing prices using the selected period.
• DATR2 repeats the calculation with twice that period to represent a broader trend.
• The example colors each line by whether it is rising or falling.
• The author suggests the longer-period line as a possible moving stop but gives no complete trading rules.
• The post claims better fit in trending markets than sideways ones but supplies no test results.

Tags

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