TransparentTrader wrote: Sat Mar 21, 2026 5:31 am Request: ATR% Multiple From 50-MA [TradingView]

This is an indicator I found while looking for novel approaches to mean reversion.

From the TradingView description:

How can one measure stock price extension?

In my view, decision-making in the trading business should rely on quantifiable data. A method I personally employ for scaling out and taking partial profits involves setting a threshold based on the multiple of Average True Range (ATR%) from the 50-day Simple Moving Average (SMA). For instance, I find it beneficial to start taking profits when positions exceed 7-10 times the ATR% from the 50-SMA. This practice helps prevent second-guessing or becoming emotionally attached to any particular position.

A relevant example illustrating this concept is the case of PLTR, SOFI, TSLA, VRT, NVDA which experienced a stall and subsequent decline after exceeding 10 times the ATR% from its 50-day moving average.

While there is no foolproof profit-taking mechanism that guarantees selling at the absolute market peak, employing this strategy can be a valuable tool for scaling out profits during extended periods to minimize potential losses.

The code is protected, but the formula is provided in the description:



Screenshot 2026-03-20 142938.jpg

I should note one person suggests there would be a better way to do the calculations:



I'm interested in porting this indicator to MT4 for a few reasons.

I want to see how this indicator will behave on timeframes lower than the daily charts. I also want to see how it will behave with other instruments such as forex, futures, and commodities.

Additionally, this indicator is used to show when an asset is heavily over-bought (tops), but I wonder if it can be used in the opposite direction to show when an asset is heavily over-sold (bottoms).

More information can be found in this Substack article written by the author of the indicator, at point #2.

I believe there's an alternate version of this indicator (also a protected script) that plots the extremes in a separate window instead of on the chart, and in an oscillator fashion.

Thanks for all your help in advance!