Suffering from a bit of information overload; I'm sure there's a simple answer, but ... what's the easiest/best way to plot a certain number of ATR's (for example lets say 2x ATR) from price?

Using the simulated trading in v16 I wanted to try plotting a line that's 2x the ATR and use that as a stop.

Add a Custom PCF Indicator to the chart with a formula starting with C - 2 * and then a formula for ATR inside of parentheses at the end.

So for a using 10 period average true range you could use the following formula.

C - 2 * ((AVGH10 - AVGL10) / 2 + (ABS(H - C1) + ABS(C1 - L) + ABS(H1 - C2) + ABS(C2 - L1) + ABS(H2 - C3) + ABS(C3 - L2) + ABS(H3 - C4) + ABS(C4 - L3) + ABS(H4 - C5) + ABS(C5 - L4) + ABS(H5 - C6) + ABS(C6 - L5) + ABS(H6 - C7) + ABS(C7 - L6) + ABS(H7 - C8) + ABS(C8 - L7) + ABS(H8 - C9) + ABS(C9 - L8) + ABS(H9 - C10) + ABS(C10 - L9)) / 20)

Please provide a description and PCF for calculating an ATR value to be used as a stop loss value
Sir Old Viking Trader and PCFs
20-Day Average True Range
ATR for PCF
5 day Average True Range

That's pretty easy. I should've mentioned I usually use a 13-period ATR. Can you write or point me to a ATR(13) PCF?

Please try the following for the simple ATR:

(AVGH13 - AVGL13) / 2 + (ABS(H - C1) + ABS(C1 - L) + ABS(H1 - C2) + ABS(C2 - L1) + ABS(H2 - C3) + ABS(C3 - L2) + ABS(H3 - C4) + ABS(C4 - L3) + ABS(H4 - C5) + ABS(C5 - L4) + ABS(H5 - C6) + ABS(C6 - L5) + ABS(H6 - C7) + ABS(C7 - L6) + ABS(H7 - C8) + ABS(C8 - L7) + ABS(H8 - C9) + ABS(C9 - L8) + ABS(H9 - C10) + ABS(C10 - L9) + ABS(H10 - C11) + ABS(C11 - L10) + ABS(H11 - C12) + ABS(C12 - L11) + ABS(H12 - C13) + ABS(C13 - L12)) / 26

Or the following for the stop:

C - 2 * ((AVGH13 - AVGL13) / 2 + (ABS(H - C1) + ABS(C1 - L) + ABS(H1 - C2) + ABS(C2 - L1) + ABS(H2 - C3) + ABS(C3 - L2) + ABS(H3 - C4) + ABS(C4 - L3) + ABS(H4 - C5) + ABS(C5 - L4) + ABS(H5 - C6) + ABS(C6 - L5) + ABS(H6 - C7) + ABS(C7 - L6) + ABS(H7 - C8) + ABS(C8 - L7) + ABS(H8 - C9) + ABS(C9 - L8) + ABS(H9 - C10) + ABS(C10 - L9) + ABS(H10 - C11) + ABS(C11 - L10) + ABS(H11 - C12) + ABS(C12 - L11) + ABS(H12 - C13) + ABS(C13 - L12)) / 26)

Some day I want a peek at your spreadsheets ;)

Since the stop PCF starts with C - 2 I'm assuming it plots below price and is the stop for long trades. If I'm going short, I take it I just change C - 2 to C + 2 ?

Exactly.

Cool. There's hope for me yet. I'll try and give you Friday off.

No guarantees. ;)

Keltner Channels

Keltner Channels kind of do this, but not exactly. While the upper and lower channels are a multiple of ATR above and below the center line, the value of the centerline is not price. The center line of Keltner Channels is a moving average of typical price ((H + L + C) / 3).

Keltner Channels

Exactly! Not exactly...

Keltner Channels centerline is "typical price" not the close. I'm entering a trade and setting a stop based on the close rather than the typical price. So, ...

Bruce 1, Telework 0. :) 

Happy Friday!!

Happy Friday!

Have you tried the indicator: "Volatility Stop?"

Thanks

Hi diceman.

Yeah, Volatility Stop, Parabolic SAR, Elder's Safe Zone, Chandelier Stops, ATR Stops ... did I forget any? I've played a little with Volatility Stops; I'm aware they use a True Range multiple. But that's about it.

Maybe I should plot all the different stops on one chart, and if I can still see Price, trying paper trading. LOL! :)

Looks like a buy to me! :)

Your eyes are better than mine. LOL!

Hi Bruce,

I like the ATR channels, but I'd also like to try channels based on percentage of price. What if I wanted to plot bands, for example, 1.5% above and below price?

Thanks!

Add Envelope Channels with the Period set to 1 and the Width (%) setting set to 1.50.

Cool. Figured it would be simpler than an ATR, but didn't want to assume.

Btw, we need to get PCFs added to the next Olympics!! Go for the gold!!!

Thanks, Bruce.

There doesn't appear to be anything wrong with the formula itself.

If you are using Edge or Internet Explorer you might want to try copying and pasting using Chrome instead.

Another thing to try would be to copy and paste into a text editor such as Notepad and then copy and paste from the text editor into TC2000.

Bruce,

   I am trying to replicate the above pcf for  5 periods and keep getting a syntax error.

C - 2 * ((AVGH5 - AVGL5) / 2 + (ABS(H - C1) + ABS(C1 - L) + ABS(H1 - C2) + ABS(C2 - L1) + ABS(H2 - C3) + ABS(C3 - L2) + ABS(H3 - C4) + ABS(C4 - L3) + ABS(H4 - C5) + ABS(C5 - L4)) / 10)

Any help is much appreciated.

Don

In TC2000 v17 the 5 period ATR itself would just be the following.

ATR5

And price minus two times the ATR would be the following.

C - 2 * ATR5

But in earlier versions of TC2000 the 5 period ATR is quite a bit longer.

(AVGH5 - AVGL5) / 2 + (ABS(H - C1) + ABS(C1 - L) + ABS(H1 - C2) + ABS(C2 - L1) + ABS(H2 - C3) + ABS(C3 - L2) + ABS(H3 - C4) + ABS(C4 - L3) + ABS(H4 - C5) + ABS(C5 - L4)) / 10

As is price minus two timen the ATR.

C - 2 * ((AVGH5 - AVGL5) / 2 + (ABS(H - C1) + ABS(C1 - L) + ABS(H1 - C2) + ABS(C2 - L1) + ABS(H2 - C3) + ABS(C3 - L2) + ABS(H3 - C4) + ABS(C4 - L3) + ABS(H4 - C5) + ABS(C5 - L4)) / 10)

Bruce,

   Thank you very much!

Don

You're welcome.