Watch video here: https://youtu.be/iNms9he3Vws?si=idp4TFzh9ys218kA
Here is a chart with the ATRForecaster loaded depicting both the Average and Maximum expected daily range based on historical ATR’s with the Fixed Levels option selected:
ATRForecaster helps answer the question “what is the expected trading range for the day?”. It calculates the maximum daily ATR over the last x-number of days and plots an upper and lower boundary on the chart, representing the anticipated maximum range for the day if the current price action remains consistent with historically observed ATR’s for that instrument. There is no guarantee that the market will continue trading in a similar range. Sometimes news shocks and other events cause price to exceed the average ATR.
The value of the ATRForecaster tool is that most of the time price stays within the ATR boundaries. So statistically speaking it is a good bet that price will not exceed this range. This information can be useful if for instance the lower boundary coincides with an important support level. Therefore, it is important to remain aware of where the expected range boundaries are located when implementing your trading strategy.
The software provides a few options regarding how to display the anticipated daily range:
How many days of history to use for the derivation of the daily range
Option to display the Average and the Maximum range based on ATR
Option to display the midpoint of the ATR range
Option to display dynamically adjusting levels or a fixed level for each day
Here is a chart with the ATRForecaster loaded depicting both the Average and Maximum expected daily range based on historical ATR’s with the Dynamic Levels option selected:
You can download the zip file (see link below) so you can import the software directly into the Tickblaze platform to use in your trading. If you want to access the source code, you can find everything you need here:
https://github.com/Tickblaze/Tickblaze.Scripts.ARC.
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