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Registered User
Joined: 12/29/2006
Posts: 68
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How would I go about creating an Average True Range indicator? I have seen it in various software application, but don't see it as an available indicator in TeleCharts. Please advise. 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 (although it is built into SnapSheets), 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: 7/11/2005
Posts: 12
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Bruce,
I can't believe that works! That is fantastic.
Now, how would we get the weekly average true range such that the range is computed for each week rather than each day?
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Custom Indicators are calculated based on bars not days, so switching to Weekly Charts will automatically adjust the formula to use Weekly data.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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