Average True Range Extended
This is an extension of the Average True Range indicator with the breakdown of price gain, loss, and standard deviation; with the price break down into price gain and loss, this can now be used as an oscillator with standard deviation as the queue to time the entry and exit.
- ATR Period - Typically set at 12.
- ExtStdDev Period - This the period for the Standard Deviation and it typically follows the ATR Period.
How to use
Buy / Sell Direction - If the green (gain) is higher than the loss (red), means to buy and vice versa.
- Entry - When the black line (standard deviation) cross over the green line and the green line is above the red line.
- Exit - When black line touches the green line OR green line (almost) touches the blue line (ATR) OR black line reaches the peak.
- Entry - When the black (standard deviation) cross over the red line and the green line is above the green line.
- Exit - When the black line touches the red line OR red line (almost) touches the blue line (ATR) OR black line reaches the peak.