OPEN-SOURCE SCRIPT

ATR% | Volatility Normalizer

35
This indicator measures true volatility by expressing the Average True Range (ATR) as a percentage of price. Unlike basic ATR plots, which show raw values, this version normalizes volatility to make it directly comparable across instruments and timeframes.

How it works:

Uses True Range (High–Low plus gaps) to capture actual market movement.

Normalizes by dividing ATR by the chosen price base (default: Close).

Multiplies by 100 to output a clean ATR% line.

Smoothing is flexible: choose from RMA, SMA, EMA, or WMA.

Optional Feature:
For comparison, you can toggle an auxiliary line showing the average absolute close-to-close % move, highlighting the difference between simplified and true volatility.

Why use it:

Track regime shifts: identify when volatility expands or contracts in % terms.

Compare volatility across different markets (equities, crypto, forex, commodities).

Integrate into risk management: position sizing, stop placement, or volatility filters for entries.

Interpretation:

Rising ATR% → expanding volatility, potential breakouts or unstable ranges.

Falling ATR% → contracting volatility, possible consolidation or range-bound conditions.

Sudden spikes → market “shocks” worth paying attention to.

إخلاء المسؤولية

لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.