ATR Channels – indicator for MetaTrader 5

January 15, 2015

802

ATR Channels create price movement channels considering ATR (Average True Range) technical indicator. The indicator clearly shows trend acceleration and retardation moments and also overbought and oversold areas from the average true range perspective.

The presented variant of this indicator allows to select the smoothing algorithm for the moving average out of ten possible variants:

SMA – simple moving average;
EMA – exponential moving average;
SMMA – smoothed moving average;
LWMA – linear weighted moving average;
JJMA – JMA adaptive average;
JurX – ultralinear smoothing;
ParMA – parabolic smoothing;
T3 – Tillson’s multiple exponential smoothing;
VIDYA – smoothing with the use of Tushar Chande’s algorithm;
AMA – smoothing with the use of Perry Kaufman’s algorithm.

It should be noted that Phase parameter has completely different meaning for different smoothing algorithms.

For JMA it is an external Phase variable changing from -100 to +100.
For T3 it is a smoothing ratio multiplied by 100 for better visualization;
For VIDYA it is a CMO period, for AMA it is a slow EMA period;
For AMA fast EMA period is a fixed value and is equal to 2 by default. The ratio of raising to the power is also equal to 2 for AMA.

The indicator uses SmoothAlgorithms.mqh library classes (must be copied to the terminal_data_folder\MQL5\Include). The use of the classes was thoroughly described in the article “Averaging Price Series for Intermediate Calculations Without Using Additional Buffers”.

This indicator was first implemented in MQL4 and published in Code Base at mql4.com 08.08.2006.