The ATR Envelopes indicator uses the Average True Range multiplier and adds the upper and lower envelope lines around the moving average. ATR Envelopes are also known as ATR Channels.

Usually uses the breakdown of the envelope price, ATR measures the volatility. The book Way of the Turtle by Curtis Faith describes this type of indicator, and provides testing of the breakdown of the ATR Channel by a trend-tracking system.

You can change the Moving average period, the Average True Range period, and the number of ATR multipliers. Input parameters:

• MA_periods: The number of bars to use in a simple moving average based on the closing price.
• ATR_average: The number of bars to calculate the Average True Range values.
• ATR_multiple: Multiplication factor for adding the upper and lower envelope lines around the moving average.