ATR Anchored Range %b by TradeSeekers

All time highs got you spooked to enter with no levels in sight?
Stuck in a multi-week range and wondering where the heck the pivots are!?
Wondering if you're longing the top or shorting the potential bottom and about to get smoked, sending you back to burger flipping?!

Fret not trading friends!

I've been crafting the ultimate map for scalpers, slingers, swingers, swindlers, swashbucklers -and traders too.

Why should I care about this, what's an ATR!?
Nearly any trader that's entered the markets has heard of ATR, perhaps even taken a stab at trying to calculate the flux capacity of a weekly ATR on a lower timeframe. Continually calculating things manually sucks!

Ok, so you haven't heard of ATR? It's the average true range... what's the true range!? It's simply the low subtracted from the high (high - low) of any given candle.

How is ATR useful?
The theory is simple, if the ATRs on the daily timeframe for a stock are 5, then traders may have a reasonable expectation that any day in the near future the stock will mostly move +/- 5 pts. This +/- 5 can be used as a possible daily high and low for traders to use.

But ATR changes as time passes, with every billionaire X post, viral cat meme, fed announcement or government shutdown the market makes it's move. This means without this tool, traders need to run the standard lame (sorry) ATR indicator and then hand draw a bunch of important levels (barf).

I'm convinced and ready to join the ATR army, what do I do?
Glad to have you aboard sailor, slap this indicator on your layout - it'll initially display a bottom panel, say nice things to it.

Usage
The lower panel provides a %b plot representative of the current price relative to the timeframe and period ATR. (Defaults to 1D timeframe and 20 - 20 trading days in a month yo)



This %b plot is a map for price against the key ATR based levels and resets each time the timeframe change occurs.

Keep reading! (maybe grab a snack, you're doing great)

If you want to see what the indicator sees, how it maths the math, open the settings and check the "overlay" option... it's amazing, I know.



Main base of operations
This will be the gray area between first red and green lines, imagine this is a future candle for the timeframe anchored. The red would represent the candle high (red means stop/overbought), and the green would represent the candle low (green means go/oversold).

Regardless of the timeframe anchored, this area always represents the area the ATR indicates will be the building area of the current candle being formed. Traders should expect most of the trading to occur within this area.

The mid line
Don't diddle in the middle, this by default is the open price and it's the ultimate bias filter for bull or bear riders.

Extension areas
Beyond the gray area is the extension zone, this provides a whole ATR from the mid line to the extension.

Assembling a trade plan
There are just a couple of key concepts to master in order to become the ultimate ATR samurai warrior, capable of slicing through even the messiest liquidity.

Above the midline and holding, but still within the gray area? Could be a great long entry with targets to upper levels. The same holds true for below open and holding while still being within the lower gray area.

As price makes it's ascension or decline towards the ends of the initial gray ATR range, consider managing trades here. If it's suspected, due to a strong hold of the midline, that the range low or high is the midline, then continue to manage trades towards the extension zones.



Timeframes and periods oh my
The tooltips already provide some hints, but not everyone goes around clicking and hovering everything in sight (maybe I'm the only one that does that?).

There's a thoughtful approach to the default values, I like to consider the big market participants with my day trades, swings trades and beyond.

By default I've chosen the daily timeframe and a period of 20, one for each trading day of the calendar month.

It's no large leap to consider alternatives, what about 1W timeframe and a period of 4 (1 month) or 52 (1 year)?

The possibilities are nearly infinite, comment on any particular favorite combos.



An Italian Special Bonus!!!
...sorry, it's not pizza....
First, did you know the famous Italian Fibonacci's real name was actually Leonardo? I'm not sure how I feel about that. Fun fact, my ancestors are Italian.

Alright, you may have guessed that the special bonus is the mythical Fibonacci inspired "Golden Pocket", maybe it's a foreshadowing of your pockets - one can only hope.

Use this feature to show the commonly referenced Fibonacci levels within each major ATR range. I've seen some totally mathematical epic-ness with these hence the addition.

Once key ATR levels have been hit look for reversals back to golden pockets (you tricksy hobbits) for potential entry back towards the prior hit ATR level.

The %b turns gold if you have the feature enabled and of course the overlay displays them also, how fun!



Final thoughts
I hope you have as much fun using this indicator as I do, it has brought much joy to my trading experience. If you don't have fun with it, well I hope you had fun reading about it at least.

100% human crafted and darn proud of it

- SyntaxGeek