ATR Movement Percentage from Daily (Bal)

Script Description: ATR Movement Percentage from Daily
The script titled "ATR Movement Percentage from Daily" is designed to help traders analyze the price movement of an asset in relation to its daily volatility, as represented by the Average True Range (ATR). Here's a breakdown of how the script works:

Key Features of the Script:
ATR Calculation:

The script allows the user to input the length of the ATR calculation (default is 14 periods).
It retrieves the daily ATR value using the request.security function, ensuring that the ATR is based on the daily timeframe, regardless of the current chart's timeframe.
Price Movement Calculation:

It calculates the opening price of the current day using request.security to ensure it is aligned with the daily timeframe.
It retrieves the current closing price and computes the price change from the opening price.
Movement Percentage:

The percentage of price movement relative to the daily ATR is calculated. This value helps traders understand how significant the current price movement is compared to the expected volatility for the day.
Direction of Movement:

The script determines the direction of the price movement (upward or downward) based on whether the price change is positive or negative.
Dynamic Label Display:

A label is created and updated to show the movement percentage and direction on the chart.
If the price movement is upward, the label is displayed in green; if downward, it is shown in red.
The label position updates with each new bar, keeping it relevant to the current price action.
Plotting Daily ATR:

The daily ATR value is plotted on the chart as a blue line, providing a visual reference for traders to see the volatility levels in relation to price movements.
Conclusion:
This script is particularly useful for traders who want to assess market conditions based on volatility. By understanding how much the price has moved in relation to the daily ATR, traders can make informed decisions about entry and exit points, and adjust their risk management strategies accordingly. The dynamic labeling feature enhances the usability of the script, allowing for quick visual assessments of market behavior.