WATR (Weighted Average True Range) is a simple technical indicator that clearly shows direction of the current trend. May be used in breakout trading systems. Signal colored dots are added to show reversal points and change in trend direction.
Using the relationships between the high and low of a day compared with the previous close, the Average True Range is a measure of volatility developed by Welles Wilder. Typically used to identify oversold and overbought conditions, a low average true range indicates a stock which lacks volatility, while high average true range indicates potentials sell-offs of a stock.
The Weighted Average True Range applies the following weighting method:
ATR = (Prior ATR * (Period – 1)) + TR) / Period
- File: WATR.mq4
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