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Miha Kralj
2026-02-27 07:48:12 -08:00
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# ATRBANDS: Average True Range Bands
| Property | Value |
| ---------------- | -------------------------------- |
| **Category** | Channel |
| **Inputs** | OHLCV bar (TBar) |
| **Parameters** | `period`, `multiplier` (default 2.0) |
| **Outputs** | Multiple series (Upper, Lower) |
| **Output range** | Tracks input |
| **Warmup** | `period` bars |
### TL;DR
- ATR Bands create a volatility-adaptive envelope by projecting Wilder's Average True Range above and below a central Simple Moving Average.
- Parameterized by `period`, `multiplier` (default 2.0).
- Output range: Tracks input.
- Requires `period` bars of warmup before first valid output (IsHot = true).
- Validated against TA-Lib, Skender, and Tulip reference implementations where available.
ATR Bands create a volatility-adaptive envelope by projecting Wilder's Average True Range above and below a central Simple Moving Average. Unlike fixed-percentage envelopes or standard-deviation bands, ATR Bands use True Range to measure volatility, making them robust for assets with gaps, pre-market moves, and 24/7 trading where the "hidden" volatility between bars is significant. The True Range captures the maximum of intra-bar range, gap-up distance, and gap-down distance, ensuring that overnight gaps contribute fully to band width even when the current bar's open-to-close range is narrow.
## Historical Context