Absolute ATR

[thebluescout]

Can anyone point me to an indicator for an Absolute Average True Range Indicator? I want to use the ATR to identify sideways trending markets, but the ATR seems to be based upon the instrument price, rather than an absolute value I can use in a strategy across different instruments. For example, in Thinkorswim, the ATR indicator is an absolute number between .1 and .3. Or, in the alternative, another filter to identify sideways trending markets would be helpful. Thanks.

[koganam]

Can anyone point me to an indicator for an Absolute Average True Range Indicator? I want to use the ATR to identify sideways trending markets, but the ATR seems to be based upon the instrument price, rather than an absolute value I can use in a strategy across different instruments. For example, in Thinkorswim, the ATR indicator is an absolute number between .1 and .3. Or, in the alternative, another filter to identify sideways trending markets would be helpful. Thanks.

You want a complete indicator, or you want the information to code it?

[NinjaTrader_ChelseaB]

Hi thebluescout,

I'm not aware of an indicator like this.

Do you have an example from another platform that I may look at?

[Harry]

Can anyone point me to an indicator for an Absolute Average True Range Indicator? I want to use the ATR to identify sideways trending markets, but the ATR seems to be based upon the instrument price, rather than an absolute value I can use in a strategy across different instruments. For example, in Thinkorswim, the ATR indicator is an absolute number between .1 and .3. Or, in the alternative, another filter to identify sideways trending markets would be helpful. Thanks.

Could you please elaborate? I am sure that TOS uses the same ATR as NinjaTrader. The ATR is always positive. The values plotted depend on instrument and selected timeframe. If you wish to display it in a different fashion, here are your options:

(1) You could simply divided the ATR by the TickSize. The indicator will then display the ATR in ticks and not in points.

(2) Alternatively you could normalize the indicator (there are different methods available). This would transfer the ATR into a bounded indicator that plots on a scale from 0 and 1, or 0 and 100.

[thebluescout]

Harry:

That's what I want to do, I want to normalize the indicator so it plots of some type of scale. How would I do that?


Thanks.

[Harry]

Harry:

That's what I want to do, I want to normalize the indicator so it plots of some type of scale. How would I do that?


Thanks.

Add an oscillator to your chart and select ATR as input series. Below is a sample chart, where I have applied a RSI and then a ZScore indicator to the ATR.