1m Scalping ATR (with SL & Zones)

The 1m Scalping ATR (with SL & Zones) indicator is a volatility normalization tool designed to anchor ATR readings to a user-defined stop-loss for consistent market analysis across different asset classes. By translating raw ATR values into percentages or multiples of a specific stop-loss, it helps traders instantly identify whether current market conditions are suitable for their risk parameters.

Usage

The tool is primarily used to determine if current volatility aligns with a trader's typical stop-loss distance. It is particularly effective for low-timeframe scalping (M1) where volatility spikes can render a fixed pip stop-loss inadequate.

• Forex/Indices: Input your standard stop-loss in pips (e.g., 10 or 15 pips). The indicator will show current ATR relative to that value.
• Crypto: Input your stop-loss as a percentage of the entry price (e.g., 5%). The indicator automatically detects crypto tickers and adjusts the calculation.
• Zone Interpretation:
  • Green Zone (Ready for Takeoff): ATR is low relative to your SL (e.g., ≤ 15-20%). This indicates a "quiet" market where your SL is less likely to be hit by random noise.
  • Yellow Line (Mid): A neutral reference point.
  • Red Line (High): ATR is too high relative to your SL (e.g., ≥ 25% or > 1.0x SL). This suggests the market is "too wild" for the current SL setting, and you may need to increase your SL distance or wait for volatility to subside.

Details

Classic ATR is measured in absolute pips or points, which vary wildly between assets (e.g., Gold vs. EURUSD). This script normalizes volatility by calculating the ratio between the current ATR and your intended stop-loss.

The script features an "Auto Market Mode" that detects the ticker type to switch between pip-based (Forex/Commodities/Indices) and percentage-based (Crypto) calculations. It also allows for ATR smoothing using various moving average types (RMA, SMA, EMA, WMA) to filter out outlier volatility spikes.

Settings

ATR Configuration

• ATR Lookback (bars): Determines the number of bars used for the ATR calculation.
• ATR MA Type: Select the smoothing method (RMA is standard for ATR).
• Market Mode: Choose between Auto, Forex, or Crypto detection.

Stop-Loss Parameters

• FX: Stop-Loss (Pips): Set your reference SL in pips for non-crypto markets.
• CRYPTO: Stop-Loss % of Entry: Set your reference SL as a percentage for crypto markets.
• Use custom entry price?: Toggle to use a fixed entry price instead of the current close for crypto calculations.

Zone Definition

• Zone Mode: Toggle between "Percent of SL" (e.g., ATR is 20% of SL) or "Multiple of SL" (e.g., ATR is 0.8x SL).
• Low/Mid/High Thresholds: Customize the levels that define the Green, Yellow, and Red zones based on the selected Zone Mode.

FAQ

How do I use this for M1 scalping?

Set your "FX: Stop-Loss (Pips)" to your usual scalping SL (e.g., 10 pips). Only look for entries when the ATR line is in the green "Ready Zone," indicating that volatility is low enough for a tight stop to survive.

Why is the background red?

The status badge and zones turn red when the current ATR exceeds your "High" threshold. This is a warning that the market is currently too volatile for your chosen stop-loss distance.

How can I access 1m Scalping ATR (with SL & Zones)?

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