Using Average True Range to Build True Range Bands

Summary

True Range Bands are described as an alternative to Bollinger Bands that uses Average True Range. The document identifies the indicator as originally written in MQL4 and later presented for MetaTrader 5, where it relies on a smoothing-algorithm library. It points readers to a separate explanation of those library classes, but does not include the indicator’s calculation details here.

The available material establishes the indicator’s broad design idea—using true range as the basis for bands—but gives no parameter settings, trading rules, chart evidence, or performance evaluation. It therefore supports understanding the indicator’s premise, not judging whether its bands improve entries or exits. Any use would require consulting the implementation or fuller documentation to determine how smoothing and band placement work.

Key ideas

• The indicator is presented as an alternative to Bollinger Bands based on Average True Range.
• Its implementation depends on smoothing-algorithm classes described elsewhere.
• The supplied description does not state the band calculation, trading rules, or performance evidence.
• The indicator was first written in MQL4 and later published for MetaTrader 5.

Tags

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