The deconstructed ATR formula I have produced is as follows. (H-L)*100/(HHV(abs(H-ref(C,-1)) or (L-ref(C,-1)),1))
A horizontal line can be set at 100 and a breakout is viewed as a formula result greater than 100. In addition a breakout can also be accepted below 100 in the circumstances that the formula high for several weeks is broken and that previous formula high was below 100. A breakout is validated when a rally occurs on the signal day. Otherwise a rally following the signal day may be considered. As explained the formula is based on one day which I consider superior to using the typical multiple day formula. Also the signals are infrequent enough to consider the formula useful.
