Correlated ATR Bands | Adulari

How do I use it?

• Never use this indicator as standalone trading signal, it should be used as confluence.
  
• It is highly recommended to use this indicator on the 15m timeframe and above, try experimenting with the inverse feature and multipliers as well.
  
• When the price is above the moving average this shows the bullish trend is strong.
  
• When the price is below the moving average this shows the bearish trend is strong.
  
• When the moving average is purple, the trend is bullish , when it is gray, the trend is bearish.
  
• When price is above the upper band this may indicate a bearish reversal.
  
• When price is below the lower band this may indicate a bullish reversal.
  

Features:

• Purple line for bullish trend and gray line for bearish trend.
  
• Custom formula combining an ATR and Hull MA to clearly indicate trend strength and direction.
  
• Unique approach to moving averages and bands by taking the average of 2 types of MA's combined with custom ATR's, then multiplying these by correlation factors.
  
• Bands to indicate possible trend reversals when price crosses them.
  

How does it work?
1 — ATR value is calculated, then the correlation between the source and ATR is calculated.
2 — Final value is calculated using the following formula:
correlation * atr + (1 - correlation) * nz(atr, atr)
3 — Moving average is calculated with the following formula:
ta.hma((1-(correlation/100*(1+weight/10)))*(ta.sma(source+value, smoothing)+ta.sma(source-value,smoothing))/2,flength)
4 — Bands calculation using multipliers.

Versionshinweise:

• Added a time adaptive option which will make sure the bands are useable on lower timeframes as well.
  

Versionshinweise:

• Fixed time adaptive calculations for higher timeframes.