ThinkScripter » Average True Range

ThinkScripter Master Indicator

ThinkScripter — Sat, 02 May 2009 13:27:11 +0000

During last week’s chat someone mentioned they had seen a glimpse of this beast hiding on the Indicator Roundup page. The Master Indicator is a “FrankenStudy” combination of about five other studies. I have used it when trading from a size constrained screen where space is critical. At its heart it is a triple CCI with the main CCI line set to 14 periods. The two additional CCIs are set at 5 and 50. I trade this using traditional CCI methods.
Added into the indicator are:
1) Squeeze dots indicating if a squeeze is on (i.e. the Bollinger Bands are inside the Keltner Channels)
2) Volatility dots indicating if the average true range is greater than my desired working stop loss
3) A five period stochastic with blue/red dots indicating stochastic and signal line cross
4) Stochastic Madness overbought/oversold confluence triangles
5) A LSMA centerline indicator which shows if price is greater/less than the LSMA or alternately if the LSMA slope is positive/negative
Note: I will post this in the Gold Donor section of the forum on Sunday.

(Also pictured are ThinkScripter MultiStops and ThinkScripter RTH MultiPivots – Woodie’s Pivots)

ThinkScripter Master Indicator

Master Indicator Detail

ThinkScripter Multi-Stops

ThinkScripter — Thu, 12 Mar 2009 22:39:11 +0000

OK – the beast is done. I’ve been working on this for weeks now and think it’s ready for public consumption.

There are two ways to use Multi-Stops. First, it gives you a great reference point for placing trailing stops so you don’t get pipped out of the bigger moves. Rather than guess, Multi-Stops will give you a scientific guess based on recent volatility and calculated in one of five different ways. Secondly, Multi-Stops can be used as a supplementary trend tool. Looser stops will capture longer trends and avoid whipsaws but have larger drawdowns. Tighter stops will get whipsawed more often but will limit losses when the trend goes against you.

Multi-Stops will plot five different types of volatility stops. The input parameters for the stops are a volatility coefficient which is a multiplier (larger=looser stop) and the look-back length which is the distance the stop is looking backwards to compute volatility and other factors. The various methods are: Average True Range Stops, Wilder Average Stops, Chandelier Stops, Elder Safe Zone Stops and Fibonacci Stops. There is an option to allow stop expansion that is disabled by default but will allow the stop to “breathe” if you so choose otherwise you will only see the stop move in the direction of the current trend.

ThinkScripter Multi-Stops

Average True Range Stop Validation

ThinkScripter — Sun, 18 Jan 2009 17:39:45 +0000

Enter your desired working stop-loss amount. Two lines are plotted representing the current bar high/low plus the average true range of the underlying (or any multiple thereof). If your desired stop amount falls within the boundaries of the envelope, the plot is blue. When the volatility increases such that your stop is probably insufficient, the plot turns red.

Average True Range Stop Validation

# ATRSTOPS
# http://thinkscripter.wordpress.com
# thinkscripter@gmail.com
# Last Update 18 Jan 2009

input ATR_Multiple = 1.0;
input Desired_Stop_Loss = 1.0;
input ATR_period = 30;

def val = AvgTrueRange(high, close, low, ATR_period)*ATR_Multiple;

def tooVolatile = if(val>Desired_Stop_Loss,1,0);
def plotColor = if(tooVolatile,5,1);

plot LongStop = low-val;
LongStop.AssignValueColor(getColor(plotColor));
LongStop.setStyle(curve.SHORT_DASH);

plot ShortStop = high+val;
ShortStop.AssignValueColor(getColor(plotColor));
ShortStop.setStyle(curve.SHORT_DASH);