Weighted ATR (WATR) is a client side VTL Indicator. WATR is an improvement to the Average True Range (ATR) indicator. It smooths the ATR calculation by applying a weighting factor to the calculations. The WATR indicator is plotted as a trailing stoploss line on chart by adding or subtracting the WATR value to recent price high or low. WATR indicator line shows the trend direction. When green line appears on chart, trend is downward and when red line appears on chart trend direction is upward.
WATR indicator can be used as either a stand alone trading system or as a trailing stop loss. When the red line appears, trend has turned upward and Buy position can be opened. The red line can be used as a trailing stop loss. When price close below the red line and green line appears above price, trend has reversed downward and Sell position can be opened. The green line can be used as trailing stoploss. The WATR indicator can be customized trough the parameters. The WATR calculation weighting factors as well as the WATR calculation period can be adjusted in the parameters.
[You must be registered and logged in to see this image.]