True Range Break Out Entry Signal

True Range Break Out Signal

Average True Range Investopedia Definition

This indicator looks for a candle stick that has a height(range) greater than those in the average over a define period times a multiplier, the idea being that a value above 2*ATR for example is statistically significant indicating a break out move


atr = AverageTrueRange[20]

atr1 = 2// long atr multiplier

atr2 =2//short atr mutliplier

// LONG
IF (abs(open-close) > (atr*atr1) and close > open) THEN
BUY 1 CONTRACTS AT MARKET
ENDIF

//SHORT
IF (abs(open-close) > (atr*atr2) and close < open) THEN
SELLSHORT 1 CONTRACTS AT MARKET
ENDIF


Example Systems Using The indicator

Dax 15 Minutes True Range Break Out

One Comment

  1. Thank you very much, I look forward to trying this out and will let you know how it goes.

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