Script:                RTT ATR DTR rel

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Purpose:            Create a window with Average True Range (Line) and Daily True Range (Histogram).
In contrast to the commonly used price units, this indicator is normalised to show volatility as a percentage relative to the daily median price. It has been noted that sudden spikes - especially of the relative Daily True Range bars - seem to precede a turning point, whereas steady trends or consolidation periods are often accompanied by lower relative volatility. Before drawing any conclusions for a stock's price direction, make sure you check its "DNA" in this regard.
The Average is calculated as Exponential Moving Average over the DTR bars.

To save time, it is recommended to set the global chart parameters to "calculate visible points only". This means the script calculates and draws only for the days visible in the current window. (see "Parameters" below)

If you zoom out and wish to expand the plot, right-click inside the window, select the script's Properties, and click "OK". That will redraw the plot for the larger time frame.

Please note that plotted scripts work on any time scale. Substitute "tick" (week, hour, month...) for "day" where appropriate.

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References:        Investopedia: ATR
IncredibleCharts: ATR
IncredibleCharts: Stop loss
D.Guppy

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Parameters:       Period = number of days, over which ATR is calculated

Global (File) Parameter Setting for Chart to draw plotted scripts faster:

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Example

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