Download the indicator
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• Trading view Version: Relative ATR by Alejandro P
• MT4 Version: Check the Bonus Scripts and Resources section in your Member Dashboard
• (This filter is built into Desire To Trade Algos too)

Use in Desire To Trade Algos Advanced Filters #

In order to visualize the version of the indicator used in the Advanced filters of Desire To Trade made algos you will need to use a 14-period ATR for the indicator and a 200 Percentile Rank Period.

The indicator built into the advanced trade filters DesireToTrade made algos takes any value below 50 as Low Volatility, anything between 50 and 75 as High Volatility, and anything from 75 to 100 as Extreme Volatility.

Supplementary lesson from Martyn Tinsley's algorithmic trading series: Matching Volatility Filters with Timeframes of Trade Open & Close Triggers

Description #

This is an indicator that expands the usability of ATR into a strong and valuable volatility indicator.

With the Relative ATR you can quickly see when the current market volatility is extremely low, normal, or extremely high in relation to the past.

This provides traders with a much more valuable insight as to the current market conditions than normal volatility indicators.

A trader can, for example, decide to filter its strategy to only periods where the ATR is in its lowest percentiles which tells him that the market is unusually “quiet” recently and there may be a big breakout about to happen.

Or a trader can use the filter to avoid getting whipsawed with their strategy by avoiding taking trades when the Relative ATR is at its highest percentiles.