ATR Amplitude Ratio

ATR Amplitude Ratio
The ATR Amplitude Ratio indicator measures price volatility by comparing the current candle's amplitude (high-low range) to the Average True Range (ATR). This helps traders identify when price movement exceeds typical volatility thresholds, potentially signaling unusual market activity.
Key Features:

Displays the ratio between current candle height and ATR as color-coded histogram bars
Customizable ATR calculation with multiple smoothing methods (SMA, EMA, RMA, WMA)
Visual reference lines at 1x, 2x, 3x, 4x, and 5x ATR levels
Dynamic color coding based on volatility intensity (5 customizable threshold colors)
Real-time display of current ratio and ATR values

How to Use:

Volatility Assessment: Quickly identify if price action is within normal volatility ranges or exhibiting unusual movement
Breakout Confirmation: Higher ratios can confirm genuine breakouts versus false moves
Entry/Exit Timing: Consider entries when volatility returns to normal ranges after spikes
Risk Management: Adjust position sizing based on current volatility ratios

Settings:

ATR Length: Determines the lookback period for ATR calculation (default: 14)
ATR Smoothing Type: Choose from SMA, EMA, RMA, or WMA methods
Color Thresholds: Customize colors for different volatility ranges

This indicator helps traders make more informed decisions by providing context about current price action relative to recent historical volatility.