ATR: Body % + Ranges and Anomalies

ATR: Body % + Ranges and Anomalies

This indicator provides a dual analysis of price bars to help you better understand market dynamics and volatility. It combines two powerful concepts into one tool: a candle body percentage and a range analysis with an anomaly-excluding average.

Key Features:

1. Candle Body Percentage
This feature plots the size of the candle's body as a percentage of its total high-low range.

A high percentage (e.g., above the 50% gray line) indicates strong, directional movement. The more solid the body is relative to its wicks, the more conviction is behind that move.

The 100% red line marks "Marubozu" candles—bars with no wicks, showing absolute control by buyers or sellers.

2. Range Analysis with Anomalies
This is a unique part of the indicator that helps you identify and understand normal vs. abnormal volatility.

Custom SMA: It calculates an average range of the last N bars, but it smartly excludes "anomalous" bars (spikes or unusually small ranges) from the calculation. This gives you a more reliable baseline for normal volatility.

Anomaly Detection: Bars are colored differently based on their range:

Blue: Small anomalies (range less than 0.5 * ATR). These often occur during periods of low liquidity or indecision.

Red: Large anomalies (range greater than 1.8 * ATR). These can signal a sudden burst of volatility, breakout events, or capitulation.

ATR Range % Label: The label on the chart shows the current bar's range as a percentage of the custom SMA. This tells you how much larger or smaller the current bar's range is compared to a clean average.

How to Use:

Spotting Trends: Use the Body % to confirm the strength of a trend. A series of bars with high body percentages can indicate a strong, healthy trend.

Identifying Volatility: Use the Range Analysis to find areas of interest. A large red anomaly bar could signal a significant event, while a series of blue anomalies might suggest the market is in a tight consolidation before a breakout.

Contextual Analysis: The combination of these tools can provide powerful context. For example, a bar with a high Body % and a red anomaly color suggests a strong, volatile move that could be a turning point or the start of a major trend.

Experiment with the input settings to fine-tune the ATR and SMA periods for different timeframes and assets.