ATR DarMA

ATR DarMA is a client side VTL indicator. It plots the Average True Range (ATR) as a line and a moving average of the ATR.

ATR is a volatility measure. It is primarily used for stop loss placement and take profit levels. High value of ATR indicates high volatility and low ATR value indicates lower volatility in the market. When the volatility is high, wider stop losses should be used. In low volatility situations tight stop loss can be used. The take profit levels can be adjusted to the levels of volatility in the market.

ATR DarMA indicator applies a moving average to the ATR indicator, showing clearly ATR value is at higher levels or lower levels. The indicator plots two lines, the teal color line is the ATR and the red color line is the moving average of ATR. Thus ATR DarMA indicator helps the trader to easily grasp the underlying volatility condition in the market. This indicator does not generate trading signals, it shows the volatility in the market.

The ATR DarMA indicator can be customized through the parameters. “ATR Period” determines the period parameter of ATR indicator. “Signal Line Period” specifies the moving average period for ATR signal line. “Signal Line Shift” parameter determines the moving average’s displacement. “Signal Line MA Method” specifies the moving average type to be used for signal line, it can be Simple Moving Average, EMA, Time series MA or Variable MA.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:ProgramDataVertexFX Client Terminals”Company name”VTL10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.