ATR Plus
- Indicatori
- Ivan Pochta
- Versione: 1.0
ATR Plus is an enhanced version of the classic ATR that shows not just volatility itself, but the directional energy of the market.
The indicator converts ATR into a normalized oscillator (0–100), allowing you to clearly see:
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who dominates the market — buyers or sellers
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when a trend begins
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when a trend loses strength
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when the market shifts into a range
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where volatility reaches exhaustion zones
ATR Plus is perfect for momentum, trend-following, breakout and volatility-based systems.
How ATR Plus Works
Unlike the standard ATR, which shows only the size of price movement, ATR Plus separates volatility into two components:
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ATR Up — volatility inside bullish candles
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ATR Down — volatility inside bearish candles
Their ratio is then transformed into a directional oscillator:
- if bullish volatility is higher -> value moves toward 100
- if bearish volatility dominates -> value moves toward 0
- if both sides are balanced -> the line hovers around 50
This reveals the structure of volatility, not just its magnitude.
Understanding the 0–100 Scale
Recommended levels: 30 / 50 / 70
- 0–30 — Seller Dominance: Strong bearish volatility. Confirms a downtrend or a distribution phase.
- 30–50 — Weakening of Bearish Pressure: Trend slowdown, potential reversal or transition into consolidation.
- 50 — Neutral Zone: Buyers and sellers display similar volatility. Most often indicates a range or transition phase.
- 50–70 — Growing Bullish Strength: Increasing buyer dominance; early stage of an uptrend.
- 70–100 — Buyer Dominance: Strong bullish momentum.
However, volatility may become overheated → higher correction risk.
How to Use ATR Plus in Trading
1. Trend Direction Filter- Long: ATR Plus above 55–60
- Short: ATR Plus below 45–40
- Range: between 45–55
- Fast breakout from 40 -> 70 = start of a bullish impulse
- Drop from 60 -> 30 = bearish trend development
- Long stay around 50 = range/accumulation
A breakout is more reliable if ATR Plus supports the direction.
If the breakout goes against ATR Plus — chances of a false move are high.
Ideal companion for:
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Price Action
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Momentum systems
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Trend-following strategies
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Breakout systems
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ATR Period — period of the base ATR
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Smooth Period — smoothing of the final directional oscillator
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Levels (30/50/70) — configured via the Levels tab, not via Inputs
The indicator is easy to configure and does not require optimization.
