ATR zones indicator: how to visualize daily volatility boundaries on TradingView
most traders know about ATR. it's one of the most common volatility indicators out there.
but here's the problem: most traders check ATR on a separate pane, do mental math to figure out where the boundaries are, and then forget about it as the session progresses.
the ATR zones indicator changes that completely.
it plots the ATR boundaries directly on your price chart in real-time. you see the developing daily high (green line), the developing daily low (red line), and visual zones showing how much of the ATR has been used and how much room is left.
in this article, you'll learn what the ATR zones indicator is, how it works on TradingView, what the dashboard metrics mean, and how to use it for setting profit targets and catching high-probability reversals.
table of contents
- what is the ATR zones indicator?
- understanding ATR (Average True Range)
- how the ATR zones indicator works on TradingView
- understanding the ATR zones dashboard
- using the ATR zones indicator for profit targets
- using the ATR zones indicator for reversal trades
- customizing the ATR zones indicator
- ATR zones indicator vs standard ATR indicator
- does the ATR zones indicator work for stocks, futures, and crypto?
- frequently asked questions
- key takeaways
what is the ATR zones indicator?
the ATR zones indicator is a TradingView tool that visualizes Average True Range boundaries directly on your price chart.
instead of showing ATR as a number in a separate pane, it plots three dynamic lines and creates visual zones you can actually trade:
- developing daily high (green line): tracks the highest point price has reached so far during the session. updates every time price makes a new high.
- developing daily low (red line): tracks the lowest point price has reached so far during the session. updates every time price makes a new low.
- daily ATR value (blue line): shows the ATR measurement as a reference level on your chart.
visual zones
the ATR zones indicator creates filled areas between these lines so you can see the range at a glance:
- green zone (unfilled top): shows how much room is left to the upside before exceeding ATR
- red zone (unfilled bottom): shows how much room is left to the downside before exceeding ATR
- filled zone: shows the range that's already been traded
as the session progresses, the unfilled zones shrink. when they get small (less than 20% of ATR remaining), you know you're approaching the day's probable limits.
the dashboard
the ATR zones indicator includes a dashboard that displays three key metrics in real-time:
- Previous Day ATR: the actual ATR value from yesterday (e.g., 473.84 points)
- Top Unfilled ATR: how many points are left to the upside (e.g., 217.59 points)
- Bottom Unfilled ATR: how many points are left to the downside (e.g., 207.84 points)
this dashboard tells you instantly how much of the ATR has been used and how much room remains in either direction.
understanding ATR (Average True Range)
before diving deeper into the ATR zones indicator, let's make sure you understand what ATR actually measures.
what ATR tells you
ATR measures a ticker's average daily volatility over a specified period (usually 7 or 14 days).
it's calculated from previous days' high-to-low ranges. if YM's 7-day ATR is 655 points, that means the average daily range over the last 7 days has been 655 points from high to low.
respected vs exceeded
when we talk about ATR in trading, there are two key concepts:
- respected ATR: today's high-to-low range stays within the ATR value. if ATR is 655 points and today's range is 500 points, ATR was respected.
- exceeded ATR: today's high-to-low range goes beyond the ATR value. if ATR is 655 points and today's range is 800 points, ATR was exceeded.
on YM, the 7-day ATR is respected about 70% of the time over the last 6 months. that means 7 out of 10 days, price stays within the ATR boundaries.
why this matters for trading
if you know 70% of days respect the ATR, you can:
- set realistic profit targets within the ATR range
- avoid expecting continuation after 80% of ATR has been traded
- look for reversals when price approaches ATR boundaries
the ATR zones indicator makes all of this visual and automatic.
how the ATR zones indicator works on TradingView
the ATR zones indicator updates in real-time as the session progresses. here's how it works:
step 1: session starts, indicator plots initial levels
at 9:30am (NY session start), the ATR zones indicator begins tracking:
- developing daily high starts at the session's first candle high
- developing daily low starts at the session's first candle low
- ATR value is set based on the previous day's ATR calculation
step 2: lines update as price moves
as the session progresses:
- every time price makes a new high, the green line (developing daily high) moves up
- every time price makes a new low, the red line (developing daily low) moves down
- the ATR value line (blue) stays constant throughout the session
step 3: zones shrink as range expands
the visual zones shrink in real-time:
- if price rallies, the green zone (unfilled top) gets smaller
- if price sells off, the red zone (unfilled bottom) gets smaller
- when both zones are small, you've used most of the day's expected range
step 4: dashboard updates continuously
the dashboard metrics update with every tick:
- Top Unfilled ATR decreases when price rallies
- Bottom Unfilled ATR decreases when price sells off
- when either metric drops below 20% of the Previous Day ATR, you're approaching the boundary
session-specific tracking
the ATR zones indicator only tracks price action during your selected session (default: NY session 9:30am-4:00pm ET).
this is critical because ATR calculations should match the session you're trading. if you trade the NY session, you want NY session ATR—not 24-hour ATR that includes overnight noise.
understanding the ATR zones dashboard
the dashboard is one of the most powerful features of the ATR zones indicator. here's what each metric means:
previous day ATR
this shows the actual ATR value from yesterday's calculation.
example: Previous Day ATR: 473.84
this tells you today's expected range is approximately 474 points from high to low. if price exceeds this, you've had an unusually volatile day.
top unfilled ATR
this shows how much room price has left to the upside before reaching the ATR boundary.
example: Top Unfilled ATR: 217.59
this means price can rally another 218 points from the current developing high before the day's range exceeds the ATR.
as price rallies throughout the session, this number shrinks. when it gets small (under 50 points on a 474-point ATR), you know you're approaching the volatility ceiling.
bottom unfilled ATR
this shows how much room price has left to the downside before reaching the ATR boundary.
example: Bottom Unfilled ATR: 207.84
this means price can drop another 208 points from the current developing low before the day's range exceeds the ATR.
as price sells off throughout the session, this number shrinks. when it gets small, you know you're approaching the volatility floor.
the math behind unfilled ATR
here's how it works:
Previous Day ATR = Top Unfilled ATR + Bottom Unfilled ATR + Current Range
if ATR is 474 points, and you've traded a 50-point range so far, you have roughly 424 points split between top and bottom unfilled zones.
as the range expands, those unfilled zones shrink proportionally.
using the ATR zones indicator for profit targets
the ATR zones indicator is incredibly useful for setting realistic profit targets.
the 80% rule
from the ATR report data: when price has traveled 80%+ of the ATR, there's a high probability the day's range is set.
the ATR zones indicator makes this obvious:
- if Top Unfilled ATR shows 95 points remaining out of a 474-point ATR, you've used 80% to the upside
- if Bottom Unfilled ATR shows 95 points remaining, you've used 80% to the downside
when you see unfilled ATR dropping below 20% of total ATR, it's time to think about taking profits—not expecting more continuation.
setting targets based on ATR
example: you're long on YM from 43,200. ATR is 655 points.
without the ATR zones indicator: you're guessing where to take profits. maybe you target 100 points, maybe 200, maybe 500. no data behind it.
with the ATR zones indicator:
- you see the developing daily high moving up as price rallies
- dashboard shows Top Unfilled ATR shrinking from 300 to 200 to 100
- when Top Unfilled ATR hits 130 points (20% of 655), you know you've used 80% of the day's expected range
- this is your signal to take profits or tighten stops
don't fight the ATR
if price has already traveled 500 points of a 655-point ATR, don't expect another 300 points of continuation.
the ATR zones indicator shows you exactly when you're fighting the probabilities. use it to exit winners at realistic levels instead of holding for targets that only hit 30% of the time.
using the ATR zones indicator for reversal trades
since 70% of days respect the ATR on YM, the ATR boundaries become high-probability reversal zones.
catching reversals at ATR extremes
when price approaches the ATR boundary, the probabilities shift from continuation to reversal.
how to identify reversal opportunities:
- watch the dashboard metrics
- when Top Unfilled ATR drops below 20% of total ATR, you're at the upper boundary
- price reaches the developing daily high (green line)
- look for rejection signals: wicks, volume spikes, reversal candles
- enter short with stop above the developing daily high
same logic applies for lows:
- when Bottom Unfilled ATR drops below 20%, you're at the lower boundary
- price reaches the developing daily low (red line)
- look for bounce signals
- enter long with stop below the developing daily low
frequently asked questions
what is the ATR zones indicator?
the ATR zones indicator plots developing daily high, daily low, and ATR boundaries directly on your TradingView chart with visual zones. it shows you in real-time how much of the ATR has been used and how much room remains via a dashboard displaying Previous Day ATR, Top Unfilled ATR, and Bottom Unfilled ATR.
how do I add the ATR zones indicator to TradingView?
log into edgeful, connect your TradingView account, and the ATR zones indicator will appear in your "invite only" section. add it to your chart and customize the session range (default: 09:30-16:00 NY session) to match your trading hours.
what does "unfilled ATR" mean?
unfilled ATR shows how much room price has left before reaching the ATR boundary. Top Unfilled ATR shows room to the upside, Bottom Unfilled ATR shows room to the downside. when unfilled ATR drops below 20% of the Previous Day ATR, you're approaching the day's volatility limit and should look for reversals or take profits.
how often does price respect the ATR?
it varies by ticker. on YM, price respects the 7-day ATR about 70% of the time. this means 7 out of 10 days, the daily range stays within the ATR. different tickers and different weekdays show different percentages—always check edgeful's ATR report for your specific instrument.
can I use the ATR zones indicator for scalping?
the ATR zones indicator is calculated on a daily basis, so it's better suited for intraday swing trading rather than 1-minute scalping. it helps you understand the day's probable range, making it ideal for targeting moves that last several hours rather than several minutes.
key takeaways
- the ATR zones indicator plots developing daily high (green), daily low (red), and ATR value (blue) directly on TradingView
- visual filled zones show unexplored price territory within the ATR range
- dashboard displays Previous Day ATR, Top Unfilled ATR, and Bottom Unfilled ATR in real-time
- when 80%+ of ATR is used, the day's high and low are likely set—time to take profits
- use unfilled ATR metrics to set realistic profit targets (exit when ATR is nearly filled)
- look for reversals when price reaches ATR boundaries with less than 20% unfilled ATR remaining
- on YM, price respects the 7-day ATR about 70% of the time
- session-specific: default tracks NY session (9:30am-4:00pm ET), customizable for other sessions
- different weekdays show different respect/exceed rates (Thursdays stronger than Fridays on YM)
- fully customizable: colors, zones, dashboard, session range, timezone
- works on stocks, futures, forex, crypto—but ATR behavior varies by ticker
- turns ATR from an abstract number into actionable visual zones
- combine with edgeful's ATR report for probability-based trading decisions
p.s. want access to the ATR zones indicator and all our other custom TradingView indicators? get started with edgeful here.
