Volatility

Volatility Bands ATR

ATR-based envelope for stop placement and mean-reversion context, with a volatility-regime background.

Platform
TradingView (Pine v5)
Access
Free
Timeframes
5m – Daily

Plots an ATR envelope around a moving-average basis and shades the chart by volatility regime (contracting vs. expanding).

Use cases

  • Objective stop distance: 1.5–2.0 × ATR from entry.
  • Mean reversion: fade tags of the outer band only in a range.
  • Breakout timing: trade expansions out of contraction.
Basis
EMA 20
ATR length
14
Multiplier
2.0
Caution

An outer-band tag is not a reversal signal in a strong trend — price walks the band.

Not financial advice

Indicators are analysis tools, not trade signals. Test on historical and paper-traded data before risking capital.

Leave a note

Your email will not be published. Keep it constructive — this is an education-first space.