The ATR Channel plots an upper and lower channel based on the close, plus or minus, the Average True Range times a user defined factor. The user may change the period length, shift number and multiplier factor. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using the ATR Channel
No trading signals are calculated for this indicator.
How To Access in MotiveWave
Go to the top menu, choose Study>Overlays>ATR Channel
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//period = user defined, default is 14
//shift = user defined, default is 0
//multiplier = user defined, default is 2.5
//sma = simple moving average
//LT = less than
//Calculate top and middle lines for(int i = period; i LT size(); i++) atr = sma(i, period, "TrueRange"); close = getClose(i); top = round(close + (atr*mult)); bottom = round(close - (atr*mult)); Plot1: plot(i+shift, top); Plot2: plot(i+shift, bottom); endFor