AndyB Combined ATR and Outside Bars

AndyB Combined ATR and Outside Bars Indicator

This indicator integrates ATR (Average True Range) with outside bars to provide traders with a unique perspective on market momentum and volatility. By focusing exclusively on ATR and outside bars, this tool highlights key price action events that may signal trend continuation, reversals, or points of interest (POIs) for potential entry or exit points.

What Makes It Unique: This indicator stands out by combining two powerful concepts:

ATR Bars: ATR is a common volatility measure, but this indicator leverages it to detect price movements that exceed expected volatility ranges. When the price closes above or below the ATR-based thresholds, the indicator generates signals to help traders spot potential momentum shifts.
Outside Bars: Outside bars are price action patterns where a candle’s high surpasses the previous candle’s high, and its low dips below the previous candle’s low. These bars often indicate heightened volatility and can be a strong indicator of potential breakouts or reversals.
The combination of ATR and outside bars provides a unique approach to volatility-based trading, giving traders insight into market dynamics that may not be evident through standard trend or momentum indicators.

How to Use It:

With Price Action or Moving Averages: This indicator is most effective when used alongside price action analysis or moving averages. Traders should look for higher highs and lower lows to confirm potential long or short signals.
Momentum and Reversal Detection: The indicator can be used to confirm momentum in a given direction, flagging potential reversal points or continuation signals based on the ATR’s volatility thresholds and outside bar price patterns.
This indicator is designed to focus purely on ATR-based signals and outside bar patterns, offering traders a clear and concise tool for analyzing market volatility and price action in one simplified indicator.