Studies · Bands and channels
ATR Bands
atrBands · A field with volatility bands at ±k·ATR either side of it
Drawn over priceReads high, low, close
Hover the chart to read values · practice data: a seeded random walk with no overnight gaps
What it measures
Two lines placed a multiple of the Average True Range above and below the price itself. They show how far price would have to move to be an unusually large move for the current volatility.
How traders use it
- Stop placement: the lower band is a volatility-based stop for a long position, the upper band for a short.
- Profit targets: a move to the far band is a large move relative to recent volatility.
- Breakout filter: a close beyond the previous bar’s band is an unusually strong bar.
Parameters
| Name | Value | Default | Allowed | What it does |
|---|---|---|---|---|
| period | 14 | ≥ 1 usual 5–50 | Smoothing length of the ATR. | |
| multiplier | 2 | any usual 1–4 | How many ATRs the bands sit from price. 2 to 3 is common for stops. |
Outputs
| Upper | Price plus multiplier × ATR. |
| Lower | Price minus multiplier × ATR. |
Drawn in one colour, one line per output, told apart by line texture. Hover the chart to read each one.
Good to know
There is no middle line: the middle is the price itself, already on the chart. The pair is drawn as two lines rather than a shaded band for that reason.