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ATR Breakout Strategy - Help


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I would like to backtest a strategy that involves a candle's range that is less than or equal to the ATR(14).

Daily candle range = 25 pips, ATR = 55 pips - Potential trade
Daily candle range = 30 pips, ATR = 55 pips - NO potential trade

The idea behind this is that the small candle signals a resting period before the trend resumes or reverses. A buy order will be placed a pip or two above the high of the candle and vise versa for a sell order. Stop loss will be placed at the opposite end of the trigger order. If someone could create an indicator that highlights candles whose range is less than or equal to half the ATR, I would greatly appreciate it! I want to test this out on currency pairs and report back with my results here to see if this is profitable. I recall seeing a strategy similar to this being tested on a blog from 2001-2012 and it being profitable, however markets change and I would like to see if it's still profitable... I don't see this strategy working too well with stocks due to daily gaps, so I will strictly be looking at the forex market for this.

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