Graal ATR Zones
- Indicatori
- Versione: 2.12
Indicator "ATR Grail Control zones"
user's guide
Purpose of the indicator
The indicator calculates **the average price movement** (High − Low) for a given number of periods (months, weeks, days) and builds two zones ** from the current extremes of the period ** — upper and lower. Calculation logic: from **Low** of the current candle, the average move is postponed up; from **High** of the current candle, the same average move is postponed down. Each zone has a width of **+10%** of the average move value, forming a "buffer" area, beyond which the price is highly likely to return inside the range.
The logic of the work
1. The last closed period is taken (month / week / day — depending on the setting).
2. The average range (High − Low) is calculated for **N** previous periods.
3. The **upper zone is being built from the **Low** of the current period** with an offset to the middle stroke.
4. The **lower zone is being built from the **High** of the current period** with an offset to the middle stroke.
5. Each zone expands by 10% of the average stroke — this is the control zone.
The indicator can simultaneously display zones for three timeframes: **month (golden)**, **week (blue)**, **day (green)**.
Trading Idea (ATR-Grail)
Statistically, in **~8 cases out of 10**, the price that goes beyond the control zone returns back to it before the period closes. The reason is the exhaustion of liquidity: the moneymaker does not release the price beyond the average monthly (weekly average) move. The earlier the exit occurred within the period, the stronger the return signal.
**Important:** The indicator does not give signals to "continue" movement away from the zone. The trading strategy is **exclusively a return to the ** zone upon confirmation by the patterns of your vehicle.
Input parameters
Parameters for calculations
| Parameter | Description |
|---|---|
| `Number of periods to calculate` (N) | For how many recent periods (months / weeks / days) to calculate the average move. 6-12 is recommended. |
| `The number of displayed zones in the history` | How many past periods should the zones be drawn on. For example, 10 — will show the zones for the last 10 months, weeks, and days. |
Month Settings
| Parameter | Description |
|---|---|
| `Display monthly zones` | On/Off. It is recommended to keep it turned on at all times. |
| `The color of the monthly zones` | By default **Gold** (Gold). |
Settings of the week
| Parameter | Description |
|---|---|
| `Display weekly zones` | On/ Off. |
| `Color of weekly zones` | Default is **blue** (DodgerBlue). |
Settings of the day
| Parameter | Description |
|---|---|
| `Display daytime zones` | On/Off. |
| `Color of day zones` | By default, **is green** (LimeGreen). |
How to use it
Step 1. Visual assessment
You will see colored rectangles on the graph.:
- **Gold** — monthly control zones (upper and lower limits of the range for the current month).
- **Blue** — weekly control zones.
- **Green** — daytime control zones.
The price inside the zone is the market in balance. The exit of the price **outside the ** zone is a potential signal.
Step 2. Return signal
The signal is ** the exit of the price beyond the rectangle of the control zone**. Signal amplification rules:
- The exit occurred in ** the first half of the period** (the first 2 weeks of the month, the first 2-3 days of the week, the first half of the day). The sooner, the more reliable.
- The price closed behind the zone, but ** did not go far** — a reversal pattern appeared (pin bar, absorption, divergence).
- The monthly and weekly zones **are aligned** (both show the output) — the signal is stronger.
Step 3. Enter into the transaction
**Never enter just after leaving the zone.** The algorithm:
1. The price has exceeded the monthly (or weekly) control zone.
2. Switch to the lower timeframe (H4, H1).
3. We are looking for a ** pattern or signal of your trading system** to enter in the direction of **return to the ** zone.
4. We enter ONLY if there is a confirmation signal.
Step 4. Goals and Stops
- **Take profit:** the price is returned to the limits of the zone (the opposite border of the rectangle or the middle of the zone).
- **Stop loss:** for the extreme of the signal candle + margin (usually 5-10% of the width of the zone beyond its limits).
- The risk/profit ratio should be at least 1:2.
An example of interpretation
> The EURUSD price went **above** the golden rectangle of the monthly zone on the 10th. The average monthly movement of the pair over the past 10 months is ~350 points. The zone is built from the minimum of the month, which means that the price has already passed the average move + 10% of the buffer. We are expecting a refund. A pin bar has formed on H4 - an entry into the short with the aim of reaching the lower boundary of the zone.
Limitations and important notes
- The indicator ** is not a self-sufficient trading system**. It only gives the context — the boundaries of the probable movement. Entry decisions are made strictly according to your vehicle.
- During periods of strong fundamental events (Central Bank meetings, Non-Farm Payrolls, force majeure), the price may break through the zone and not return. Filter such days.
- The indicator works on **all currency pairs** and **all timeframes**, but shows the best results on **monthly and weekly** zones.
- If no signal has been formed during the entire period, you ** do not trade**. The absence of a signal is also a signal.
Installation in MetaTrader 5
1. Copy the file `Graal_ATR_Zones.mq5` to the folder `MQL5/Indicators/` of your terminal.
2. Restart the MetaTrader 5 or update the navigator tree.
3. Drag the indicator onto the chart.
4. Adjust the parameters to suit your trading style (N = 10 is recommended, history = 10, all three timeframes are included).
5. For better readability, use the **daily or weekly chart** as the main one — all three zone levels are clearly visible on it.
Recommended settings for starting
| Parameter | Value |
|---|---|
| Timeframe of the chart | D1 (daily) |
| Number of periods to calculate (N) | 10 |
| Number of displayed zones | 10 |
| Monthly zones | On, color Gold |
| Weekly zones | On, DodgerBlue color |
| Daytime zones | On, LimeGreen color |
