ATR Channel (Bottom & Top)

The ATR Channel (Bottom & Top) indicator dynamically visualizes market volatility zones based on the Average True Range (ATR). It automatically builds adaptive upper and lower boundaries around the current price, helping traders identify potential market extremes, volatility-driven reversals, and dynamic support/resistance levels.

This version is specifically optimized for Bitcoin (BTCUSDT) but works with any asset or timeframe.

⚙️ How It Works

The indicator calculates ATR over a user-defined period (default 200) and applies separate multipliers for the top and bottom bands (default ×1).

The Top Band = Close + (ATR × Multiplier)

The Bottom Band = Close - (ATR × Multiplier)

These two adaptive bands create a volatility envelope, allowing traders to visualize where the price may encounter potential exhaustion or reversal zones.

💡 Signal Logic

LONG Signal (Green Tab):
Triggered when the low of the candle touches or dips below the ATR bottom line — suggesting a possible oversold or volatility-based bottoming area.
The label displays the exact ATR line value (not the close), formatted for better readability (e.g. “LONG\n103 885”).

SELL Signal (Red Tab):
Triggered when the high of the candle touches or exceeds the ATR top line — signaling possible overbought conditions or an exhaustion zone.

Signal Filtering:
The script intelligently avoids duplicate signals — e.g., multiple consecutive LONGs or SELLs will not appear until the opposite signal is triggered.
This ensures cleaner visualization and reduces signal noise during consolidation periods.

🎯 Features

✅ Adaptive ATR-based volatility channel
✅ Automatic LONG/SELL signal labeling with real ATR-touch prices
✅ Customizable parameters:
✅ Intelligent filtering (one signal per phase)
✅ Works on any market and timeframe (crypto, forex, indices, stocks)

🧭 Trading Applications

Identify volatility extremes (ATR-based overbought/oversold zones)

Detect reversal points or exhaustion moves after extended trends

Use with trend filters (e.g. EMA200) to confirm trend continuation vs mean reversion setups

Combine with oscillators (RSI, Stoch) for confluence signals

📊 Summary

The ATR Channel (Bottom & Top) provides a clear, professional-grade visualization of volatility dynamics and price extremes.
It is especially useful for traders using mean-reversion, volatility breakout, or swing-trading strategies — helping them identify statistically significant reaction zones and improving trade timing precision.