2xATR Day Signal

This indicator is designed for daily chart analysis to identify "Exhaustion" or "Momentum" candles based on volatility. It specifically looks for days where the price range—including any overnight gaps—exceeds a user-defined multiplier of the Average True Range (ATR), typically 2x.

Unlike standard range indicators, this script treats the overnight gap as part of the daily expansion, providing a more accurate representation of the market's total move from the previous close.

Key Features

Gap-Inclusive Range: The "Span" is calculated from the previous day's close to the current day's high/low extremes.

Expansion Filter: To ensure the move is meaningful, at least 50% of the required ATR range must occur outside the previous day's High-Low range.

Retracement Control: Prevents signaling on candles with long wicks (reversals). If the price pulls back more than 20% from its daily extreme, the signal is downgraded or invalidated.

Visual Distinction:

Solid Shapes: All conditions met (High momentum).

Transparent Shapes (Warnings): The 2xATR range was met, but the candle failed the expansion or retracement filter.

How to use

ATR Length: Period for ATR calculation (Default: 14).

ATR Multiplier: Sensitivity of the signal (Default: 2.0).

Max Retracement (%): How much of the move can be "given back" before the signal weakens (Default: 20%).

Important Note

This indicator is optimized specifically for the Daily (D) timeframe. Visual signals are hidden on lower timeframes to maintain chart clarity.

Disclaimer: This script is for educational purposes only and does not constitute financial advice.