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ATR Volatility Expansion Filter

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The ATR Volatility Expansion indicator helps traders identify when market volatility is increasing.

It compares two ATR values: the Baseline ATR, which tracks long-term volatility, and the Current ATR, which measures recent price movements.

The core concept is that when short-term volatility significantly surpasses the long-term average, it signals a period of heightened price movement. Traders can use this information to adjust their strategies accordingly.

Baseline ATR (blue): Represents long-term volatility, serving as a benchmark.

Current ATR (orange): Measures short-term volatility, highlighting recent market shifts.

Threshold ATR (red): A customizable multiplier of the Baseline ATR, setting the threshold for volatility expansion.

When the Current ATR exceeds the Threshold ATR, the background turns green, indicating volatility expansion. This provides traders with ability to get involved in moving markets or avoid choppy conditions.

The indicator is fully customizable, allowing you to adjust the ATR lengths, timeframe, and threshold multiplier to align with your trading strategy.

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