ATR Plus

ATR Plus

ATR Plus is an enhanced version of the classic ATR that shows not just volatility itself, but the directional energy of the market.
The indicator converts ATR into a normalized oscillator (0–100), allowing you to clearly see:

• who dominates the market — buyers or sellers

• when a trend begins

• when a trend loses strength

• when the market shifts into a range

• where volatility reaches exhaustion zones

ATR Plus is perfect for momentum, trend-following, breakout and volatility-based systems.

How ATR Plus Works

Unlike the standard ATR, which shows only the size of price movement, ATR Plus separates volatility into two components:

• ATR Up — volatility inside bullish candles

• ATR Down — volatility inside bearish candles

Their ratio is then transformed into a directional oscillator: 

• if bullish volatility is higher -> value moves toward 100
• if bearish volatility dominates -> value moves toward 0
• if both sides are balanced -> the line hovers around 50

This reveals the structure of volatility, not just its magnitude.

Understanding the 0–100 Scale

Recommended levels: 30 / 50 / 70

• 0–30 — Seller Dominance: Strong bearish volatility. Confirms a downtrend or a distribution phase.
• 30–50 — Weakening of Bearish Pressure: Trend slowdown, potential reversal or transition into consolidation.
• 50 — Neutral Zone: Buyers and sellers display similar volatility. Most often indicates a range or transition phase.
• 50–70 — Growing Bullish Strength: Increasing buyer dominance; early stage of an uptrend.
• 70–100 — Buyer Dominance: Strong bullish momentum.

However, volatility may become overheated → higher correction risk. 

How to Use ATR Plus in Trading

• Long: ATR Plus above 55–60
• Short: ATR Plus below 45–40
• Range: between 45–55

• Fast breakout from 40 -> 70 = start of a bullish impulse
• Drop from 60 -> 30 = bearish trend development
• Long stay around 50 = range/accumulation

A breakout is more reliable if ATR Plus supports the direction.
If the breakout goes against ATR Plus — chances of a false move are high.

Ideal companion for:

• Price Action

• Momentum systems

• Trend-following strategies

• Breakout systems

• ATR Period — period of the base ATR

• Smooth Period — smoothing of the final directional oscillator

• Levels (30/50/70) — configured via the Levels tab, not via Inputs

The indicator is easy to configure and does not require optimization.