ATR% Multiple from MA

// Copyright 2025 Major Hayden
//
// Licensed under the Apache License, Version 2.0 (the "License");
// you may not use this file except in compliance with the License.
// You may obtain a copy of the License at
//
//     http://www.apache.org/licenses/LICENSE-2.0
//
// Unless required by applicable law or agreed to in writing, software
// distributed under the License is distributed on an "AS IS" BASIS,
// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
// See the License for the specific language governing permissions and
// limitations under the License.
//
//@version=6
indicator('ATR% Multiple from MA', shorttitle = 'ATR% Multiple', overlay = true, max_labels_count = 500)

// ═══════════════════════════════════════════════════════════════
// ATR% MULTIPLE FROM MOVING AVERAGE
// ═══════════════════════════════════════════════════════════════
//
// PURPOSE: Measure stock price extension from its moving average
// in terms of ATR multiples. Helps identify overextended conditions
// for scaling out profits or avoiding late entries.
//
// FORMULA:
//   ATR% = ATR / Close Price
//   % Gain from MA = (Close - MA) / MA
//   ATR Multiple = (% Gain from MA) / ATR%
//
// INTERPRETATION:
//   7-10x: Consider taking partial profits
//   >10x: Highly extended, increased risk of pullback
//
// CREDITS: Inspired by jfsrev's TradingView indicator concept
//
// ═══════════════════════════════════════════════════════════════

// INPUTS - Core Settings
atrLength = input.int(14, 'ATR Length', minval = 1, group = 'Settings', tooltip = 'Period for Average True Range calculation')
maLength = input.int(50, 'MA Length', minval = 1, group = 'Settings', tooltip = 'Period for Moving Average calculation')

// INPUTS - Thresholds (Above / Below MA)
stockAbove = input.int(10, 'Stocks: Above', minval = 1, group = 'Thresholds', inline = 'stocks')
stockBelow = input.int(4, 'Below', minval = 1, group = 'Thresholds', inline = 'stocks')
etfAbove = input.int(7, 'ETFs: Above', minval = 1, group = 'Thresholds', inline = 'etfs')
etfBelow = input.int(4, 'Below', minval = 1, group = 'Thresholds', inline = 'etfs')
otherAbove = input.int(10, 'Other: Above', minval = 1, group = 'Thresholds', inline = 'other')
otherBelow = input.int(4, 'Below', minval = 1, group = 'Thresholds', inline = 'other')

// INPUTS - Label Settings
labelSize = input.string('small', 'Label Size', options = ['auto', 'tiny', 'small', 'normal', 'large', 'huge'], group = 'Labels')
upperColor = input.color(color.green, 'Colors: Above', group = 'Labels', inline = 'colors')
lowerColor = input.color(color.red, 'Below', group = 'Labels', inline = 'colors')



// ═══════════════════════════════════════════════════════════════
// CALCULATIONS
// ═══════════════════════════════════════════════════════════════

// Detect instrument type and select appropriate thresholds
isStock = syminfo.type == "stock"
isFund = syminfo.type == "fund"
upperThreshold = isStock ? stockAbove : isFund ? etfAbove : otherAbove
lowerThreshold = isStock ? stockBelow : isFund ? etfBelow : otherBelow

// Calculate ATR and MA
atr = ta.atr(atrLength)
ma = ta.sma(close, maLength)

// ATR% = ATR / Close
atrPercent = atr / close

// % Gain from MA = (Close - MA) / MA
gainFromMA = (close - ma) / ma

// ATR Multiple = % Gain from MA / ATR%
// Simplified: = ((close - ma) / ma) / (atr / close)
//            = ((close - ma) / ma) * (close / atr)
atrMultiple = atrPercent != 0 ? gainFromMA / atrPercent : 0

// Check if extended beyond thresholds (above or below MA)
isExtendedAbove = atrMultiple >= upperThreshold
isExtendedBelow = atrMultiple <= -lowerThreshold

// ═══════════════════════════════════════════════════════════════
// VISUALIZATION
// ═══════════════════════════════════════════════════════════════

// Convert size string to size constant
getSize(sizeStr) =>
    switch sizeStr
        'auto' => size.auto
        'tiny' => size.tiny
        'small' => size.small
        'normal' => size.normal
        'large' => size.large
        'huge' => size.huge
        => size.small

markerSize = getSize(labelSize)

// Show ATR multiple as number label when thresholds exceeded
if isExtendedAbove
    label.new(bar_index, high, str.tostring(math.round(atrMultiple)), color = color.new(color.white, 100), textcolor = upperColor, style = label.style_label_down, size = markerSize)

if isExtendedBelow
    label.new(bar_index, low, str.tostring(math.round(math.abs(atrMultiple))), color = color.new(color.white, 100), textcolor = lowerColor, style = label.style_label_up, size = markerSize)

// ═══════════════════════════════════════════════════════════════
// ALERTS
// ═══════════════════════════════════════════════════════════════

alertcondition(isExtendedAbove, title = 'Extended Above MA', message = '{{ticker}} is extended above MA')
alertcondition(isExtendedAbove and not isExtendedAbove[1], title = 'Became Extended Above', message = '{{ticker}} just became extended above MA')
alertcondition(isExtendedBelow, title = 'Extended Below MA', message = '{{ticker}} is extended below MA')
alertcondition(isExtendedBelow and not isExtendedBelow[1], title = 'Became Extended Below', message = '{{ticker}} just became extended below MA')

// ═══════════════════════════════════════════════════════════════
// DATA WINDOW
// ═══════════════════════════════════════════════════════════════

plot(atrMultiple, title = 'ATR Multiple', display = display.data_window)
plot(atrPercent * 100, title = 'ATR%', display = display.data_window)
plot(gainFromMA * 100, title = '% from MA', display = display.data_window)
plot(ma, title = 'MA', display = display.data_window)
plot(atr, title = 'ATR', display = display.data_window)