ninZaATR

Overview

ninZaATR overcomes the 2 major drawbacks of standard ATR: its sensitivity to gaps and its excessive fluctuations.

It delivers a stable, smooth, and reliable ATR measurement, making any ATR-based indicator or system stronger and more effective.

ninZaATR vs Standard ATR

1. Calculation method

• Standard ATR:
  - Includes the previous bar’s close in its formula, which makes the value heavily influenced by session gaps.
  - Expands abnormally on intraday charts (minute, tick, ninZaRenko…), causing readings that no longer reflect true market volatility.
• ninZaATR:
  - Removes the previous bar’s close completely and calculates ATR purely from bar ranges (high–low).
  - Delivers values that are free from gap distortion and reflect market movement more accurately.

2. Stability & Smoothness

• Standard ATR:
  - Fluctuates abruptly and changes direction sharply, making its readings unstable.
  - Causes indicators and systems to suffer from “whipsaws”, producing misleading signals from false volatility.
• ninZaATR:
  - Applies a 2-layer smoothing process (SMA + ninZa.co’s proprietary formula).
  - Provides gradual and stable changes, acting as a reliable volatility filter that shields trading indicators and systems from noise and reflects true market conditions.

3. Practical application

• Standard ATR:
  - Works well on daily, weekly, and monthly charts where gaps are less problematic.
  - Delivers inaccurate signals on intraday charts, which reduces the performance of ATR-based indicators and systems.
• ninZaATR:
  - Optimizes performance on intraday charts (minute, tick, Renko…).
  - Enables ATR-based indicators and systems (such as Easy Trend, Solar Wave, …) to operate with higher accuracy and efficiency.

Why use ninZaATR?

• Reduces the abnormal impact of gaps on ATR
• Maintains smoothness and stability of the volatility filter
• Prevents whipsaws and false signals
• Allows for more accurate stop-loss placement
• Enables precise position sizing
• Optimized for intraday charts (minute, tick, Renko, etc.)