Rolling ATR Momentum

Rolling ATR Momentum Indicator – User Manual

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🔍 Overview
The Rolling ATR Momentum Indicator is a simple yet powerful tool designed to detect shifts in market volatility. It compares the current Average True Range (ATR) with the ATR from a previous point in time to measure how market volatility is changing.

This indicator is especially useful for:
- Spotting the beginning or fading of a momentum phase
- Filtering out low-volatility market conditions
- Enhancing timing for entries and exits in trending or breakout trades

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📊 Key Components

✅ ATR Delta (Rolling)
- Definition: `ATR Delta = Current ATR - Past ATR`
- Inputs:
- ATR Period (default: 14): The base ATR calculation window
- Lookback Period (default: 5): How many bars ago to compare ATR
- Interpretation:
- Positive ATR Delta (Green Line): Market volatility is increasing
- Negative ATR Delta (Red Line): Market volatility is decreasing

📈 Zero Line
- A horizontal baseline at zero helps you easily see when ATR momentum shifts from negative to positive (or vice versa).

🟩/🟥 Background Color
- Green Background: ATR Delta is positive (rising volatility)
- Red Background: ATR Delta is negative (falling volatility)

🔵 Optional: ATR Reference Lines
- You can optionally display raw Current ATR and Past ATR by changing their visibility settings.

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✅ How to Use It

Entry Timing (Futures/Options)
- Use ATR Delta as a filter:
- Only take trades when ATR Delta is positive → confirms momentum is building
- Avoid trades when ATR Delta is negative → market might be slow, sideways, or losing steam

Breakout Anticipation
- A rising ATR Delta after a tight range or consolidation can suggest that a breakout is underway

Stop-loss Strategy
- Use high ATR periods for wider stops (to avoid noise)
- Use low ATR periods for tighter stops or skip trading

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🧠 Pro Tips
- This indicator doesn’t predict direction—combine with trend or price structure tools (like EMA, PPMA, candlesticks)
- Works best in trending or breakout environments
- Add it to multi-timeframe layouts to see volatility buildup on higher timeframes

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⚙️ Settings
| Parameter | Description |
|----------|-------------|
| ATR Period | Length of the ATR calculation (default 14) |
| Lookback Period | How many bars back to compare ATR values |

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🧭 Best For:
- Index futures (Nifty, BankNifty)
- Option buyers needing volatility confirmation
- Intraday & swing traders looking to trade momentum setups

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Use the Rolling ATR Momentum indicator as your volatility radar—simple, clean, and highly effective for staying on the right side of market energy.

End of Manual