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| TradeStation Applications: | Indicator |
| Market: | All (Stock, Futures, Forex, Options) |
| TimeFrame | Any Time Frame |
The DIG Average True Range indicator, is an improvement of the Standard ATR – Average True Range indicator, which is a popular volatility indicator that is used by many trades.
The Standard ATR is an amazing indicator, but it has one major inherited flaw.
When we use a Volatility indicator such as the ATR, we want to know what is the real price action, by how much will the next bar go Up or Down. But when Gaps have such a high influence, as in the Standard ATR, we are no longer getting what we wanted. After a large Gap the Standard ATR indicator does not reflect the real price action volatility anymore. Take a look at the chart below, which compares the Standard ATR indicator (Light Blue) with the DIG ATR indicator (Yellow).
AAPL 60 Min Chart:
The chart compares our improved DIG ATR (Yellow) with the Standard ATR (Light Blue) indicator. Notice that even when a medium size gap occurs the Standard ATR indicator jumps up, and now no longer reflects the actual price range, while the DIG ATR reacts to the GAP in a much milder manner and continues to accurately reflect the price range. Also notice that when the market has no gaps both indicators are almost identical.
Most traders use the Standard ATR to place StopLoss and TakeProfit orders. If you are one of these traders, you really need to try the DIG ATR indicator (which is Free) . The indicator will help you get more out of your trades by providing you with more accurate data.
Key Features :
- Adjustable Length
- New Extra Feature – select the type of calculation [ Full candle / Only Body ]
- The indicator is also provided as a function
