ATR Rope Strategy - Jaxon0007

🔹 Overview

The ATR Trend Rope is a volatility-based trend detection tool designed to adapt dynamically to price movements.
It combines Average True Range (ATR) smoothing with a rope-style adaptive channel to identify:

📈 Bullish trends (green rope)
📉 Bearish trends (red rope)
⚖️ Neutral/consolidation zones (gray rope with shaded areas)
This makes it useful for detecting trend continuation, reversals, and sideways consolidation ranges.

🔹 Features

✔️ Adaptive Rope Line → Filters out market noise using ATR.
✔️ ATR Channel → Upper & lower dynamic levels for volatility tracking.
✔️ Consolidation Zones → Highlights sideways price action.
✔️ Dynamic Colors → Instant visual feedback of trend direction.

🔹 How to Use

Trend Detection

Green rope = bullish trend (look for longs).
Red rope = bearish trend (look for shorts).
Gray rope = neutral / range (avoid trend trades).

Consolidation Zones

Shaded areas represent sideways phases.
Breakouts from these zones often lead to strong moves.
ATR Channel
Optional channel lines act as dynamic support/resistance.
Price above channel → strong bullish pressure.
Price below channel → strong bearish pressure.

🔹 Backtest / Strategy Idea

Although this script is coded as an indicator, you can manually backtest it with simple rules:

Long Entries:

Rope turns green after a consolidation or cross.
Confirm with price closing above rope.

Short Entries:

Rope turns red after a consolidation or cross.
Confirm with price closing below rope.

Exit / Stop-Loss:

Exit when rope flips color.
Stop-loss can be placed at ATR channel levels.
This system can be turned into a strategy by adding entry/exit conditions directly in Pine Script (optional).

🔹 Settings

Price Source: Default close (can be changed).
ATR Period: Default 14.
ATR Multiplier: Default 1.5 (controls sensitivity).
Show Consolidation Zones: On/Off toggle.
Show ATR Channel: On/Off toggle.