ATR Levels, Strat Price Action & Momentum Strategy

The ATR Levels, Strat Price Action & Momentum Strategy indicator is a comprehensive technical analysis tool designed to assist day traders by combining ATR-based Fibonacci levels, Strat price action setups, and multi-layered momentum filters. It provides a structured framework for identifying trend direction, potential reversal zones, and actionable candle patterns within the context of daily volatility.

Usage

The indicator identifies market conditions through three primary components:

• ATR Fibonacci Levels: Automatically plots dynamic levels based on the daily open and Average True Range (ATR). These levels (0.236, 0.382, 0.5, 0.618, 0.764, and 1.0) serve as targets for profit-taking or zones for entries (e.g., the "Call Range" or "Put Range").
• Momentum Filtering: Uses a combination of Exponential Moving Averages (8, 21, 34, 55 EMAs), Hull Moving Average, VWMA, and VWAP. The background "Momentum Band" changes color to reflect bullish (Green), bearish (Red), or conflicting (Blue/Orange) states.
• Strat Setups: Detects and labels specific candle types and sequences, including 1-bars (Inside Bars), 2-bars (Directional), and 3-bars (Outside/Engulfing Bars). It specifically highlights Strat actionables like 212, 322, and 312 patterns.
• Information Table: A customizable dashboard tracks Full Timeframe Continuity (FTFC), ATR exhaustion percentage, and current directional bias across multiple periods.

Details

The script executes logic based on the interaction between price and trend-following tools. A bullish trend is confirmed when price remains above the EMA stack (8 > 21 > 34 > 55) and VWMA, or when the Hull Moving Average is rising alongside price staying above VWAP. Bearish conditions are the inverse. The ATR levels are calculated daily to provide volatility-adjusted support and resistance, helping traders avoid "chasing" moves that have already exhausted their expected daily range.

Settings

Display Options

• Show ATR Fibonacci Levels on Chart: Toggles the visibility of the daily volatility levels.
• Show Strat Candle Setups and Indicators: Enables labels for Inside, Outside, and Directional bars.
• Show Momentum Bands: Displays the trend-colored background bands.
• Show Info Table: Toggles the visibility of the dashboard.
• Toggle Showing The Full Table or Smaller Table: Optimizes the dashboard for desktop or mobile viewing.
• Color Candles to Match Momentum Trend Color: Changes candle colors to reflect the overall trend bias.

FAQ

How do I interpret the ATR Levels? Levels between 0.236 and 0.618 ATR are typically considered prime entry zones, while the 1.0 level and beyond represent areas where the daily move may be overextended.

What does the Momentum Band color signify? Green indicates a fully bullish trend across EMAs and volume-weighted averages; Red indicates a bearish trend. Blue/Orange suggests a conflict in indicators, signaling a neutral or transitionary phase.

How can I access this tool? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.