MTF ATR Reversal Levels (Open Source)

The MTF ATR Reversal Levels indicator provides a multi-timeframe swingarm system that identifies trend reversal thresholds across five different resolutions using Average True Range (ATR) calculations.

Usage

This tool is designed to help traders identify trend reversals by tracking ATR-based trailing stop levels across multiple timeframes simultaneously.

• Multi-Timeframe Monitoring: The script displays reversal levels for up to five user-defined resolutions. By default, these levels are shown as horizontal lines extending from the current bar to reduce chart clutter.
• Trend Confirmation: A trend reversal is confirmed when the closing price exceeds one of the plotted thresholds. Green levels indicate support (uptrend), while red levels indicate resistance (downtrend).
• Fibonacci Reversal Levels: On the primary resolution, users can enable a Fibonacci cloud. This cloud uses the ATR levels to plot internal retracement zones (e.g., 50.0, 61.8, 78.6) relative to the current trend's extreme price and the reversal level.
• Alerting: The script generates Buy and Sell alerts when price breaks through the specified thresholds. A "Conservative Alert" option is available to signal only after a pullback has occurred within the new trend.

Details

The indicator calculates its levels based on a "Swingarm" logic, incorporating elements from the Blackflag FTS system. It utilizes a modified or unmodified ATR calculation to determine the "loss" or distance from the price.

• Trailing Logic: The reversal level follows the price in a one-way direction until a breach occurs, at which point the trend flips and a new level is established on the opposite side of the price.
• TR/ATR Ratio: Labels on the chart provide a ratio of the Current True Range to the Average True Range, helping traders gauge current volatility relative to historical norms for each timeframe.

Settings

General Settings

• Trailtype: Choose between 'modified' (using smoothed price references) or 'unmodified' (standard ATR) logic.
• ATR Period/Factor: Controls the sensitivity and distance of the reversal levels.
• Show Current Reversal Level: Toggle to display horizontal lines for the current bar's levels across all resolutions.
• Plot Historical Reversal Levels: Toggle to see the full historical path of the trailing levels.

Resolution Settings

• Primary Resolution: Set the main timeframe (defaults to Chart TF) and configure the optional Fibonacci Reversal Cloud.
• Resolutions 2-5: Independent timeframe selectors to monitor higher or lower timeframes simultaneously.

Alert Settings

• Show Trend Change Buy/Sell Alert: Enables visual plot shapes for reversals.
• Alert After Pullback: If enabled, the system waits for a minor retracement toward the level before issuing an alert.

FAQ

How do I use the MTF ATR Reversal Levels for entries?

Traders typically use the breakthrough of a level as a trend reversal confirmation or use the multi-timeframe levels as confluence zones for stop-loss placement and take-profit targets.

What is the Fibonacci Reversal Cloud?

It is a visual zone plotted between the current trend's extreme (high/low) and the ATR reversal level, subdivided by Fibonacci percentages to identify potential areas of support or resistance during a trend.

How can I access MTF ATR Reversal Levels?

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