This custom indicator combines the Average True Range (ATR) with a Price Moving Average (MA) to help traders analyze market volatility in percent to the price.
Key Components:
Average True Range (ATR)
Price Moving Average (MA)
ATR/Price in Percent
ATR/Price in Percent Purpose: This ratio helps traders understand the relative size of the ATR compared to the current price, providing a clearer sense of how significant the volatility is in proportion to the price level. Calculation: ATR is divided by the current closing price and multiplied by 100 to express it as a percentage. This makes it easier to compare volatility across assets with different price ranges. Plot: This is plotted as a percentage, making it easier to gauge whether the volatility is proportionally high or low compared to the asset's price.
Usage: This indicator is designed to help identify the most volatile tokens, making it ideal for configuring a Grid Bot to maximize profit. By focusing on high-volatility assets, traders can capitalize on larger price swings within the grid, increasing the potential for more profitable trades.
Features: Customizable Smoothing Method: Choose from RMA (Relative Moving Average), SMA (Simple Moving Average), EMA (Exponential Moving Average), or WMA (Weighted Moving Average) for both ATR and the Price Moving Average. Dual Perspective: The indicator provides both volatility analysis (ATR) and trend analysis (Price MA) in a single view. Proportional Volatility: The ATR/Price (%) ratio adds a layer of context by showing how volatile the asset is relative to its current price.