Last updated
Last updated
Average True Range (ATR) measures market volatility by decomposing price ranges over a specified lookback period.
ATR is calculated dynamically as new candles are introduced to the lookback period. For each candle, the True Range is defined as the greatest of the following:
Current high minus the current low.
The absolute value of the current high minus the previous close.
The absolute value of the current low minus the previous close.
The True Range for each candle in the lookback period is averaged to generate the ATR. Increasing the lookback period enhances the influence of past data and lessens the impact of new volatility and vice versa.
Specifies the method used to determine trends.
Advanced Trend Catcher - If activated, Mongols will front-run the Average True Range calculation for early trend detection. This can be good for catching the highs and lows of trends on higher timeframes but may prove too sensitive to volatility on lower timeframes.
Basic Average True Range - If activated, trend direction will be based on the Average True Range calculation. This may prove more useful than the Advanced Trend Catch on lower time-frames or when using Mongols as a confluence factor.
This setting can be used to bias trend detection in the direction of the macro trend. Set this multiplier to >3 during bullish macro trends and <3 during bear macro trends.
This setting can be used to bias trend detection in the direction of the macro trend. Set this multiplier to >3 during bearish macro trends and <3 during bullish macro trends.
Specifies the minimum volatility required for Mongols to fire signals. Higher values will reduce the sensitivity of the algorithm to price fluctuations making signals less frequent, but more reliable. This may prove useful in choppy market conditions.
Specifies the Higher Timeframe on which Average True Range (ATR) will be calculated to determine the macro trend direction. If a value other than ‘chart’ is set, this will override the setting in the section. The sensitivity of ATR to Higher Timeframe volatility can be adjusted in the setting.
The Higher Timeframe trailer analyzes macro trends over 1000 candles at the resolution of the current timeframe in TradingView. The maximum lookback period must be considered when selecting a Higher Timeframe. See the section for details.
Specifies the lookback period used to calculate the Average True Range (ATR) on the . This ATR is used to determine macro trend direction which in turn, determines if the or is used in the generate signals on the current timeframe.
Increasing the lookback period generates a smoothing effect that reduces the impact of recent volatility on the ATR calculation. Conversely, decreasing the period length increases sensitivity to volatility. See the section for further details.
Sets the lookback period over which ATR is calculated on the current time frame. Increasing period length generates a smoothing effect that reduces the impact of recent volatility on the ATR calculation. Conversely, decreasing the period length increases sensitivity to volatility. See the section for further details.
Macro trend direction is determined using Average True Range (ATR) on the . The ATR lookback period for ATR on the Higher Timeframe can be adjusted in the setting.
Macro trend direction is determined using Average True Range (ATR) on the . The ATR lookback period for ATR on the Higher Timeframe can be adjusted in the setting.
Specifies if and will be adjusted manually or set to a short, medium, or long-term preset. These settings are only active if is set to Advanced Trend Catcher.
Sets the number of lookback periods used to calculate . This setting is only active if is set to Advanced Trend Catcher.
Sets the standard deviation to be used in trend catcher calculation. This setting is only active if is set to Advanced Trend Catcher.
Generally, Trend Catcher Std. Deviation (sd) should be increased as (p) is increased. e.g. p = 10, sd = 1.9; p = 20, sd = 2; p = 50, sd = 2.1. However, these settings may not suit some assets.
Volatility detection based on the width of the Bollinger Band technical indicator can also be activated as a global function in the section. Global volatility detection operates independently of volatility settings within individual factions.
The Mongols algorithm determines trend direction with calculations based on the Average True Range (ATR) technical indicator.