Author: Luis Guilherme Damiani
ATR Channels are a powerful tool for traders, allowing you to visualize price movement through the lens of the Average True Range (ATR) indicator. This indicator helps you pinpoint moments of trend acceleration and deceleration, as well as identify overbought and oversold conditions from the ATR perspective.
This specific version of the ATR Channels indicator offers a variety of smoothing algorithms to choose from, giving you flexibility in how you analyze market movements. Here are some of the options:
- 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 Using Tushar Chande's Algorithm
- AMA - Smoothing Using Perry Kaufman's Algorithm
It’s important to note that the Phase parameter varies in meaning depending on the smoothing algorithm used:
- For JMA, it’s an external Phase variable ranging from -100 to +100.
- For T3, it represents a smoothing ratio multiplied by 100 for better visualization.
- For VIDYA, it refers to the CMO period, while for AMA, it designates a slow EMA period.
- In the case of AMA, the fast EMA period is a fixed value of 2 by default, and the exponent for raising is also set to 2.
This indicator utilizes the SmoothAlgorithms.mqh library classes, which need to be copied to the terminal_data_folder\MQL5\Include directory. For a deeper dive into using these classes, check out the article "Averaging Price Series for Intermediate Calculations Without Using Additional Buffers".
This indicator was initially developed in MQL4 and was published in the Code Base on August 8, 2006.
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