I am sharing a idea for a trading system based on ATR. We will create bands of a certain ATR values around the price. When the prices moves beyond these bands we can create buy and sell Alerts.
We will first create the centre line by plotting a EMA line of the price. The period of the EMA is selectable from the parameter window. Then we will plot upper and lower band lines of a particular ATR value above and below the centre line. The ATR value is again selectable from the parameter window. We will again create another band which we will call "space". This again will an ATR multiple selectable from the parameter window.
When the stock price moves up beyond the centre line we will have weak buy condition. When the price cross above the value of close when the weak buy condition occurs we will get the confirmation for the weak buy signals. similarly we will have medium buy signal when the price move beyond the first upper band line. We will have a strong buy signals when the price moves above the second upper band. The sell conditions occur in a similar manner when the price moves down below the lower bands
The AFL is made available for those who are interested to experiment and improve on this system.