LBR-Volatility Breakout Bars

7 oct 2023

The originator of this script is Linda Raschke of LBR Group.

This Pine Script code is the version 5 of LBR Paintbars for TradingView, called "LBR-Bars." It was originally coded for TradingView in version 3 by LazyBear. It is a complex indicator that combines various features such as coloring bars based on different conditions, displaying Keltner channels, and showing volatility lines.

Let me break down the key components and explain how it works:

1. Inputs Section: This section defines various input parameters that users can adjust when adding the indicator to their charts. These parameters allow users to customize the behavior and appearance of the indicator. Here are some of the key input parameters:

- Users can control whether to color bars under different conditions. For example,
they can choose to color LBR bars, color bars above/below Kelts, or color non-LBR
bars.

- Users can choose whether to show volatility lines or shade Keltner channels' area
with the Mid being the moving average on the chart.

- In the calculation of Keltner channels, users can set the length of the moving
average that the Keltner channels use as the mid and then set the Keltner multiplier.
If users want to use "True Range" to determine calculations, they can turn it on or
off; it defaults to off.

- Users can change the calculation of volatility lines and set the length for finding the
lowest and highest prices. The user sets the ATR length and multiplier for the ATR.

2. Calculation Section: This section defines the calculation of the upper and lower standard deviation bands based on the input parameters. It uses Exponential Moving Averages (EMAs) and optionally True Range to calculate these bands if turned on. These bands are used in the Keltner channel calculation.

3. Keltner Channel Section: This section calculates the upper, middle, and lower lines of the Keltner channels. It also plots these lines on the chart. The colors and visibility of these lines are controlled by user inputs.
https://www.tradingview.com/x/FGJMBuxQ/

4. Volatility Lines Section: This section calculates the upper and lower volatility lines based on the lowest and highest prices over a specified period and the ATR. It also checks whether the current close price is above or below these lines accordingly. The colors and visibility of these lines are controlled by user inputs.


5. Bar Colors Section: This section determines the color of the bars on the chart based on various conditions. It checks whether the current bar meets conditions like being an LBR bar, being above or below volatility lines, or being in "No Man's Land." The color of the bars is set accordingly based on user inputs.

This Pine Script creates an indicator that provides visual cues on the chart based on Keltner channels, volatility lines, and other customizable conditions. Users can adjust the input parameters to tailor the indicator's behavior and appearance to their trading preferences.