ATR-Based Trend Oscillator with Donchian Channels

This script, my Magnum Opus, combines the best elements of trend detection into a powerful ATR-based trend strength oscillator. It has been meticulously engineered to give traders a consistent edge in trend analysis across any asset, including highly volatile markets like crypto and forex. The oscillator normalizes trend strength as a percentage of ATR, smoothing out noise and allowing the oscillator to remain highly responsive while adapting to varying asset volatility.

Key Features:
ATR-Based Oscillator: Measures trend strength in relation to Average True Range, which enhances accuracy and consistency across different assets. By normalizing to ATR, the oscillator produces stable and reliable values that capture shifts in trend momentum effectively.

Dual Moving Averages for Smoothing: This script features two customizable moving averages to help confirm trend direction and strength, making it adaptable for short- and long-term analysis alike.

Donchian Channels for Strength Bounds: A Donchian Channel over the smoothed trend strength oscillator visually bounds strength levels, enabling traders to spot breakout points or reversals quickly.

Ideal for Multi-Asset Trading: The versatility of this indicator makes it a perfect choice across various asset classes, from stocks to forex and cryptocurrencies, maintaining consistency in signals and reliability.

Suggested Pairing: Use this oscillator alongside a directional indicator, such as the Vortex Indicator, to confirm trend direction. This pairing allows traders to understand not only the strength but also the direction of the trend for optimized entry and exit points.

Why This Indicator Will Elevate Your Trading: This trend strength oscillator has been refined to provide clarity and edge for any trader. By incorporating ATR-based normalization, it maintains accuracy in volatile and steady markets alike. The Donchian Channels add structure to trend strength, giving clear overbought and oversold signals, while the two moving averages ensure that lag is minimized without sacrificing accuracy.

Whether you're scalping or trend-trading, this oscillator will enhance your ability to detect and interpret trend strength, making it an essential tool in any trading arsenal.