ATR Bands (Keltner Channel), Wick and SRSI Signals

The ATR Bands (Keltner Channel), Wick and SRSI Signals indicator combines volatility-based bands, candle wick analysis, and Stochastic RSI filtering to identify potential pivot points in trending and ranging markets. It aims to detect early trade entries by capturing price extensions where wicks penetrate key levels but bodies remain contained, signaling a potential reversion to the mean.

Usage

The indicator provides various signals based on price interaction with ATR-calculated bands and a central baseline:

• Primary Band Signals (B/S): Triggered when a candle wick extends beyond the primary multiplier bands while the body closes inside, suggesting a pivot at extreme volatility levels.
• Multiplier Offset Signals (B1/S1, B2/S2): These provide signals at fractional distances (e.g., 1/2 or Phi offsets) of the primary multiplier to catch earlier or alternative pivots.
• Baseline Signals (B3/S3): Used primarily for trend continuation. In an uptrend, B3 signals suggest entries near the rising baseline; in a downtrend, S3 signals suggest entries near the falling baseline.
• Consolidation Signals: In ranging markets, the indicator highlights oscillations between the upper and lower bands.

Traders can use the Stochastic RSI Filtering to ensure signals only trigger when the oscillator is in overbought (>80) or oversold (<20) territory, adding a layer of cyclic confirmation.

Details

The script utilizes Keltner Channels, which are volatility envelopes typically set above and below an Exponential Moving Average (EMA). Unlike Bollinger Bands which use standard deviation, these use Average True Range (ATR).

A key concept is the Wick Ratio. The indicator calculates the proportion of the wick relative to the candle's total size (or body). If a wick is sufficiently large and crosses a band while the close remains on the "safe" side, it indicates aggressive rejection by market participants. The inclusion of a Timeframe Extender allows the calculation of these wicks over a custom lookback, effectively simulating higher timeframe rejection patterns on lower timeframe charts.

Settings

Channel Settings

• Baseline EMA Period: The length of the central moving average basis line.
• ATR Period: The lookback period used for Average True Range calculations.
• Multiplier: The value used to set the distance of the bands from the baseline.
• Band Smoothing: Applies a moving average to the bands to reduce noise.

Additional Channels

• Half of Multiplier Offset: Toggles bands at 50% of the multiplier distance.
• Phi (Φ) Offset: Toggles bands based on the Golden Ratio (1.618) multiplier.

Wick Settings

• Wick Ratio for Bands/Baseline: The minimum percentage a wick must occupy relative to the candle to trigger a signal.
• Use Candle Body: If enabled, wick ratios are calculated against the body size instead of the high-low range.

Stochastic RSI Settings

• Use Stochastic RSI Filtering: Enables filtering so signals only appear during extreme oscillator readings.
• K / RSI Length / Stochastic Length: Standard parameters for the Stochastic RSI calculation.

Baseline Consolidation

• Fast/Middle/Slow EMA: Parameters for the three EMAs used to color the baseline based on trend alignment (Uptrend, Downtrend, or Consolidation).

FAQ

How do I interpret the baseline colors?

The baseline changes color based on the alignment of three internal EMAs. An aligned order (Fast > Mid > Slow) indicates an uptrend, the reverse indicates a downtrend, and any other order suggests consolidation or ranging.

Why are some signals not appearing on my chart?

TradingView has a limit of 500 labels per chart. If your settings are very sensitive and generate many signals, older labels will be removed to stay within this limit.

How can I access this indicator?

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