Trending True Range

Display a smoothed true range during trending markets, thus filtering any measurement occurring during ranging markets. Whether the market is trending or ranging is determined by the position of the efficiency ratio relative to its Wilder moving average.

Settings

• Resolution : resolution of the indicator
  
• Length : period of the efficiency ratio and the Wilder moving averages used in the script
  

Usage

If you are not interested in volatility during ranging markets, this indicator might result useful to you. An interesting aspect is that it both measures volatility, but also determine whether the market is trending or ranging, with a zero value indicating a ranging market.


Indicator against Atr, with both length = 14, our indicator might be easier to interpret.

Note

Thx to my twitter followers for their suggestions regarding this indicator. I apologize if it's a bit short, the original code was longer and included more options, but forcing a script to be lengthy is a really bad idea, so I stayed with something less flashy but certainly more practical, "classic Grover" some might say.

Thx for reading!