The Average True Range (ATR) is used to measure volatility. atr_length defines the period over which ATR is calculated default: 14. Pivot Average:
A 10-day simple moving average pivot avg is calculated using the closing price. Buy and Sell Signals:
Buy Signal: When the price is above the pivot average plus a multiple of ATR. Sell Signal: When the price is below the pivot average minus a multiple of ATR. The atr_multiplier determines how sensitive the buy/sell levels are to price movements. Visual Elements:
The pivot average is plotted as a blue line on the chart. Buy and sell signals are plotted as green and red labels below and above bars, respectively. Strategy Execution:
The strategy enters a long position when a buy signal is triggered. It exits the long position when a sell signal is triggered.