Turtle ATR Channel
- Indikatoren
- Yupeng Xiao
- Version: 1.10
This indicator was modified according to the 'Way Of The Turtle'. It generates a channel based on the opening price and ATR values of the current bar. Turtle ATR Channel can be used to help identify overbought and oversold conditions in a market.
Calculation
upper channel = Open + r1*ATR
lower channel = Open - r2*ATR
Among them:
- Open is the opening price of the current bar.
- ATR is the ATR value of the current bar.
- r1, r2 are the ATR ratios.
Input Parameters
- ATR Period - set the period of the ATR indicator, default value is 14.
- ATR Up Ratio - set the value of r1, default value is 1.0.
- ATR Low Ratio - set the value of r2, default value is 1.0.
How to trade
Basically Turtle ATR Channel can be used to help identify overbought and oversold conditions in a market. When a market’s price break through the upper channel, the market is considered overbought (selling area). Conversely, when a market’s price break through the lower channel, the market is considered oversold (buying area).
Note: When your opening position is lost out, stop trading at the same direction next time. For example, you opened a sell position when price broke through the upper channel and it was lost out. After that price broke through the upper channel again. At that moment you should not open a sell position and wait for the price to break through the lower channel.
It is applicable to all currencies and all timeframes.
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