VFILabs ATR Line Break combines the midpoint of recent price action with Average True Range to create a single dynamic trend filter line. When price is above it — trend is up. Below it — trend is down. Buy Break and Sell Break signals fire automatically when price crosses the line — no manual reading required.
ATR Line Break distills trend into a single number — the midpoint of recent price action expanded by one ATR. It adapts to market volatility automatically so it stays relevant in both quiet and volatile conditions.
The midpoint anchors the line to recent price structure. Adding ATR pushes it above normal price noise so only genuine trend breaks register — not every wiggle. Configurable lookback and ATR length let you tune it to any timeframe.
A single focused study that gives you a clear, volatility-adjusted read on trend direction on any timeframe.
The ATR component expands and contracts with market volatility. In high-volatility conditions the line gives more room. In quiet markets it tightens — keeping you in trend without false breaks.
The line is anchored to the midpoint of the highest high and lowest low over your lookback period — not an arbitrary moving average. It reflects actual recent price structure.
Uses an Exponential Moving Average on the True Range for the ATR calculation — more responsive to recent volatility shifts than a simple average, less noisy than raw true range.
Displays directly on your price panel as a clean golden line — no separate region needed. Overlay it with any other studies without cluttering your chart.
Two inputs — lookback period and ATR length — give you full control. Use identical settings for both to keep it simple, or tune them independently for your exact setup.
A green arrow fires automatically when price closes above the ATR line after being below it. The previous bar must have closed below — confirming a genuine cross, not just a wick.
A red arrow fires automatically when price closes below the ATR line after being above it. Same confirmation logic — requires a genuine close-to-close cross to eliminate false breaks.
Equally effective on 1-minute scalping charts, hourly swing charts, and daily position charts. The ATR component automatically scales to the timeframe's natural volatility.
Use it as a trend filter, a re-entry guide, a stop reference, or a bias anchor. It's one line that does the work of several indicators.
Only take long signals when price is above the ATR line. Only take short signals when price is below it. Simple, objective, no debate.
Price pulls back to the ATR line and holds? That's your re-entry. The line acts as dynamic support in uptrends and dynamic resistance in downtrends.
Place stops just beyond the ATR line rather than arbitrary tick distances. A close through it means the trend assumption is broken — get out cleanly.
Combine with VFILabs Delta Flow or Depth Intelligence signals. An absorption trap signal firing right at the ATR line is a high-probability setup.
Set both to the same value for a simple setup, or tune them independently to match your trading style and timeframe.
| Input | Default | Recommended Settings |
|---|---|---|
|
Trend Lookback Bars
Number of bars used to find the highest high and lowest low for the midpoint
|
14 | 5–10 for scalping · 14 for intraday · 20–30 for swing trading |
|
ATR Length
EMA period for the Average True Range calculation
|
14 | Match to Trend Lookback for simplicity · Use a shorter ATR (7–10) for faster volatility response · Use a longer ATR (20+) for smoother line |
|
Signal Marker Offset (ticks)
How far above/below the bar the arrow appears
|
4 | Increase if arrows overlap with price bars · Decrease for tighter placement |
|
Min Bars Between Signals
Cooldown period to prevent back-to-back signals
|
3 | Set to 1–3 for active markets · Set to 5–10 to filter choppy conditions |
Your license key is emailed automatically within seconds of purchase from sales@vfilabs.com. Run the included installer, enter your key, and the study installs directly to your Sierra Chart Data folder.
No. The ATR Line Break calculates on closed bar data only. The line value for any given bar does not change once that bar closes — there is no repainting.
Any market available in Sierra Chart — futures, forex, equities, crypto. The ATR Line Break only requires OHLC data and works on all timeframes from 1 minute to daily.
Yes — it pairs naturally with VFILabs Delta Flow as a trend filter, and is already built into the Depth Intelligence suite where the OrderFlow study uses it as a context filter for signal quality.
Yes — your license covers up to 2 machine activations. Contact sales@vfilabs.com if you need to move to a new machine and we will reset your activation.
One clean line. Volatility-adjusted. Always objective. Add ATR Line Break to your Sierra Chart setup today.
Go Elite