A custom ATR indicator displaying multiple volatility multiplier values to help traders make precise position sizing decisions with easy-to-read chart annotations.
Explore complementary indicator rolesHow it works
The DD ATR Readings indicator calculates Average True Range (ATR) using either Simple Moving Average (SMA) or Exponential Moving Average (EMA) over a specified number of periods, typically 20. It then multiplies the ATR value by three customizable multipliers, displaying the exact numeric results directly on the chart.
By default, the indicator uses multipliers of 2.0, 1.5, and 0.45, which are the same values recommended in the trading course. Traders can adjust these multipliers and the calculation method to suit their specific trading strategy and volatility analysis needs.
Why it may be useful
Volatility is a crucial aspect of trading that helps traders understand potential price movement ranges and manage risk effectively. This indicator provides immediate, visual insights into market volatility by displaying precise ATR multiplier values, allowing traders to make more informed decisions about position sizing and potential trade entry or exit points.
Unlike standard ATR indicators that only show a line, this tool offers numeric values that can be quickly interpreted, reducing the cognitive load of manual calculations and providing a clear, uncluttered view of market volatility.
When to explore it
This ATR indicator is most effective when traders need to quickly assess market volatility and make rapid position sizing decisions. It works particularly well in markets with significant price fluctuations, such as during earnings reports, economic announcements, or periods of market uncertainty.
Traders can use this tool across various timeframes and markets, from scalping to swing trading, making it a versatile tool for both short-term and medium-term trading strategies. Its customizable nature allows it to adapt to different trading styles and market conditions.
Keep exploring
What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
