ATR Volatility Based System Indicator for ThinkorSwim

BenTen

BenTen

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This indicator is based on Jim Berg's ATR system. It helps to identify bullish, bearish, and neutral trend. Now available for ThinkorSwim.




thinkScript Code



This is a repost from our private Warehouse forums. This post is provided to our general members who wish to purchase the indicator as a single product.
 
mc01439

mc01439

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@BenTen - Why was the cloud added? I do not recall a cloud being used? I'm guessing it is used instead of the 34 week MA?
 
BenTen

BenTen

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@mc01439 I believe it was in the original code. Cloud = distance between exit and entry. Let me know if you see something else.
 
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skynetgen

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I love this study on daily so much. This is latest version . There is a lot of stuff to add and build on but as it is very very good for daily trend changes .

I have a theory why its so good and it fits in line with my thinking. - There is a lot which can be improve but its uncanny how such ATR volatility reflects market structure even in a simple study like this
 
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skynetgen

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I'll try to summarize:
1) Market structure is this: 1) zones of consolidation (sqz triangles, expanding triangles and boxes) 2) shakeouts 3) Trends
2) We want to catch trends while avoiding 1) and 2)
3) ATR volatility character change is basically a proxy indicator for a transition from consolidation to shakeout and/or trend

Goal is to build something more accurate, but this one is very very good as starting point
 
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skynetgen

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1) I dont use cloud - removed
2) it combines HHLL over period . I mean this with coloration and fixes I added is a different signal than Keltner. Keltner just gives you bands. This gives you signal when character of volatility changes. I added this to my main daily chart and signal it gives is amazing accuracy ( I use other things too, but for main trend direction this is now my main thing)

p.s. - Only testing it for daily. I use different approach for different intraday timeframe as price action there behave differently ( gaps , time of day etc ). - It might work there I dunno - not tested yet
 
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skynetgen

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So closing the swing I tested today. I ran scan on monday morning and chose 3 names : FDP, ULTA, TOT. I entered them in AM
I should have chosen more short names but whatever (maybe even makes for better test) :

FDP closed today near target for nice profit .
TOT closed on alert on crossing under trailstop on Tuesday (minor loss)
ULTA closed this morning on reversing below yest close ( and market -well you seen the market). good profit .

Will work more on analysis this weekend but so far pretty promising
 
BenTen

BenTen

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@skynetgen I'm really enjoying this indicator on the daily and hourly as well. Needs more testing but so far so good. I look forward to reading your analysis.
 
J007RMC

J007RMC

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I really like this indicator so simple and clean on my daily chart.. Ive added a few things to the chart the advanced mm, volume reversal and Demark support and resistance as well the magic fib. Very excited to see where it goes from here,
 
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skynetgen

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Well I added it to every timeframe except weekly and monthly and went through my week analysis (all trades and setups done during the week). Its effing amazing. Will be using it in trades next week as core of my setup. The only thing it is a bit laggy with new trend setups on 30m for intraday plays. So when I see a gray bar on 30m and everything else is good (daily/5m) its good enough for entry
 
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skynetgen

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So I think I found a perfect MTF compliment for this. This is based on hguru CCIATRMTF cloud (fixed a few bugs and simplified a bit)
using 15min for 5min and 4h for 30m

 
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skynetgen

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overall this is very good volatility based indicator. However there are 2 things I am currently discovered which compliments it very well:
namely momentum indicators. I presently use HHLLS with (12 length, HULL settings) as leading confirmation and Rev engineered RSI upper channels as main momentum guide

All makes perfect sense - volatility indicates phase of price action. Momentum - the actual price action strength and direction confirming action inside this phase
 

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