Elder Force Index With ATR Channels
Adding a channel average true range (Average True Range, ATR) to the index force (Force Index) was proposed Kerry Lovvornom. The addition of these channels makes the Force Index in an excellent tool to determine intermediate peaks and valleys. Strength Index with ATR TV does not capture all the turns, but the ones he determines deserve serious attention.
Note: the word "true" in the Average True Range refers to the elimination of gaps in the price. Since the index forces are no gaps, there ATR coincides with the average range.
Whenever Force Index rises above or falls below its channel 3-ATR, this means that the ticker reached unsustainable extreme. In these zones, depleted ups and downs, and the prices tend to unfold. This is one of the few instruments that are equally effective in the call both the upper and lower regions. Elder-disk sets red arrow on the graph when EMA strength index lying above the channel 3-ATR. He places a red arrow below the graph, when the EMA falls below the duct 3-ATR.
According to our experience, these signals are especially works well on the weekly chart. Of course, users can experiment with them on any timeframe.
To prevent smoothing charting any extreme value, Force Index with ATR Channels programmed to reject the value of 4-ATR. This feature can be disabled by using the parameter 'Shrink values too high' (true = enabled, false = disabled).
Input parameters
- Length for EMA of Raw Force Index (13) - EMA length values for untreated Force Index
- Length for EMA of Bands (21) - length EMA upper and lower bands.
- Applied Volume (Tick volume) - the amount for the calculation of Force Index.
- Shrink values too high (true) - discard Force Index value above 4-ATR. Set to False to retain the original value.
- Color of spike signs (red) - splashes of color arrows.
- Size of spike signs (2) - the size of the burst arrows.
You can choose which to use the Force Index: original "classic" version or a new one, with a ATR channels. One possibility is the use of the new Force Index with ATR Channels on your original weekly charts and smoothed Force Index on the daily chart.
Advice on the format: strength index channel 7 has graphs - the index of power smoothed strength index, the upper and lower ranges of 1, 2 and 3 ATR.
Strength Index is drawn blue thick line. Average strength index - a solid red line. The upper and lower band 1 ATR are drawn by dotted lines. The upper and lower bands in the ATR 2 are drawn with broken lines. The upper and lower bands in the ATR 3 are drawn by solid gray lines.
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