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Registered User
Joined: 4/1/2006
Posts: 7
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I am interested in setting up an indicator or formula that shows ATR, Average True Range, for any of the socks I am interested in. I would like to be able to change the number of bar periods that the ATR covers. ATR is a common formula used by the "Turtles" and many other traders. It gives a dollar value range for any particular stock. A friend of mine told me that is available in Tradstation and I assume that it is availeable in Telechart but I can't find it. Please help. Thanks.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Average True Range is not one of TeleChart's built in indicators, but it can be created as a Custom Indicator. Please try the following for a 20-Period ATR:
Select Chart Template | Add Indicator | Indicator.
- Visible: Checked
- Center Zero Line: Checked
- Plot using price scale: Unchecked
- Smoothing Average: 39 (twice the ATR-Period minus one)
- Average Type: Exponential
- Indicator Formula: (H - L + ABS(H - C1) + ABS(L - C1)) / 2
You can adjust the Average True Range Period by changing the Smoothing Average in the Custom Indicator. For example, to plot a 14-Period ATR, just change the Smoothing Average to 27 (which equals (14 * 2) -1).
You may wish to review the following:
Plotting Custom Indicators with Examples
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 4/1/2006
Posts: 7
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Bruce L.,
Thanks for the formula for ATR - seems to work. Three questions if possible...
1)It appears that the ATR formula is only valid through the previous day; in essence it is not including figures from today even if an update is done; is this correct?
2)Is there any way to show the ATR figue as an exact number as well as the line on a graph? (i.e. like the current price is shown in a box on the standard chart superimposed over the chart prices to the far right?
3) Is there any way to name and save ones custom indicators?
Thanks again for your help with this.
Noah
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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QUOTE (Noah) It appears that the ATR formula is only valid through the previous day; in essence it is not including figures from today even if an update is done; is this correct?
This should not be the case. I've used this Custom Indicator successfully with Real Time Data.
QUOTE (Noah) Is there any way to show the ATR figue as an exact number as well as the line on a graph? (i.e. like the current price is shown in a box on the standard chart superimposed over the chart prices to the far right?
If the Custom Indicator is in the top section of the chart, you can display its value in the Pointer Mode Data Box. You can plot an invisible version in the top section if you wish to have the visible version in another section of the chart. Select the period key (.) on your keyboard twice to bring up the Data Box.
It is possible to write Personal Criteria Formulas for Average True Range, but they can be quite large and would only be updated when you update your PCFs. The results of these PCFs can be displayed Data Bar where Price is normally displayed on your charts.
QUOTE (Noah) Is there any way to name and save ones custom indicators?
I am not aware of a way to do this currently using TeleChart.
You may wish to review the following:
Customize the Data Bar to display selected data points
Please provide a description and PCF for calculating an ATR value to be used as a stop loss value
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 4/1/2006
Posts: 7
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Bruce L,
First off thanks for all of your geat assistance with ATR formulas. As I worked with them last night, I had one more question...
Is it possible to add or change the ATR formula to show the ATR as a percentage? What I'm interested in showing is an ATR value as an average daily percentage change relative to the stocks price. Is ther a formula to do this?
Thanks, Noah
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Please try the following (you will need to substitute the appropriate ATR formula):
100 * (ATR formula) / C
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 4/10/2006
Posts: 3
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QUOTE (Bruce_L) Average True Range is not one of TeleChart's built in indicators, but it can be created as a Custom Indicator. Please try the following for a 20-Period ATR: Select Chart Template | Add Indicator | Indicator. - Visible: Checked - Center Zero Line: Checked - Plot using price scale: Unchecked - Smoothing Average: 39 (twice the ATR-Period minus one) - Average Type: Exponential - Indicator Formula: (H - L + ABS(H - C1) + ABS(L - C1)) / 2 You can adjust the Average True Range Period by changing the Smoothing Average in the Custom Indicator. For example, to plot a 14-Period ATR, just change the Smoothing Average to 27 (which equals (14 * 2) -1). You may wish to review the following: Plotting Custom Indicators with Examples
Hi Bruce,
I have a question about the ATR indicator formula specified previously. If I'm reading it correctly, it adds three values together: (H - L), ABS(H - C1) and ABS(L - C1). Having done that, the result is then divided two. Is there any particular reason why one divides by two and not three?
Thanks,
Adriaan
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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adriaanvw,
There are three possible positions for yesterday's close relative to today's range:
Yesterday's close is within todays range:
(H - L) = Today's Range
(H - C1) + (C1 - L) = Today's Range
(H - L) + (H - C1) + (C1 - L) = Double Today's Range = Double True Range
Yesterday's close is above today's range:
(H - L) = Today's Range
(C1 - H) + (C1 - L) = Today's Range + Double (C1 - H)
(H - L) + (C1 - H) + (C1 - L) = Double True Range
Yesterday's close is below today's range:
(H - L) = Today's Range
(H - C1) + (L - C1) = Today's Range + Double (L - C1)
(H - L) + (H - C1) + (L - C1) = Double True Range
In all three cases, the result needs to be divided by two to get True Range.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 8/6/2005
Posts: 40
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Bruce,
Would that be possible to get Average True Low and Average True High values separately out of Average True Range formula you mentioned?
Thanks!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Do you consider the True Low to be the lowest of today's low and yesterday's close? If so:
(ABS(C1<L)*C1)+(ABS(C1>L)*L)
Do you consider the True High to be the Highest of today's high and yesterday's close? If so:
(ABS(C1<H)*H)+(ABS(C1>H)*C1)
- Craig
Here to Help!
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