mql5

ATR Trend Envelopes - indicator for MetaTrader 5

The reason why the ATR is used is the following - the % change works OK for middle term timeframes. But for short timeframes and long timeframes it tends to be either too slow or too fast. Here is a comparison of this indicator (upper) and the "classical" version (lower) on daily timeframe. It is obvious that the difference is big and that the "trend" should be redefined in the "classical" calculation.