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SR/Gap Proximity (ATRs) |
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SR/Gap Proximity (ATRs)
This parameter is used to restrict the display of S/R and Gap lines so that only those lines that are within a certain distance of the current price are displayed on the chart. This can help to reduce clutter on the chart. The value that you enter for this parameter is the number of ATRs to use in the proximity calculation.
The Average True Range (ATR) calculation is used to perform this function. As each new bar comes in, the current ATR value is calculated using the number of bars specified in the Tolerance ATR Length parameter. This ATR value is then multiplied by the value you supply in the S/R Gap Proximity parameter. The resulting number is added to current price and subtracted from current price to create a price envelope. Only those S/R and Gap lines that fall within this envelope will be displayed on the chart.
The range is from 1 to 1000 and the default value is 10.
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