SFL ATR Bands

24 Jan 2020

Many traders use ATR as a way to determine stop loss placement. It usually works like this:
- Stop loss for a short trade = high of last candle + ATR value
- Stop loss for a long trade = low of last candle – ATR value

This is an indicator that allows you to do just that: it gives you an easy way to view current and historical volatility using ATR-based price bands.


Features

The indicator is configurable with the following settings:

• ATR period
  
• ATR multiplier
  
• ATR applied to highs/lows OR the close price
  
• Bands offset
  
• Only show for the last X candles
  

How To Use This Indicator

Since this indicator shows average volatility bands, it is a good measure of how much the price moves. So we can use ATR bands in a number of ways:

• it’s an easy way to see where you can place your stop loss
  
• you can use a multiple of ATR as your trade target
  
• you can trail your stops alongside the ATR bands