ATR + RSEMA

📐 What is the RSEMA Indicator

The RSEMA combo is a volatility filter built around ATR (Average True Range) that uses a combination of RMA, SMA, and EMA smoothing methods.

ATR measures the raw size of price movement each bar.

RMA (Running Moving Average) provides a slow, stable baseline for volatility.

SMA (Simple Moving Average) captures the “middle ground” by averaging raw ATR over a fixed window.

EMA (Exponential Moving Average) reacts fastest and highlights short-term volatility spikes or fades.

By stacking these three moving averages together on ATR, you get a layered view of volatility quality.

🔑 Why This Works

When ATR + EMA are strong and above SMA and RMA → market is in an expanding, decisive regime.

When ATR flattens and EMA dips toward SMA/RMA → volatility is compressing and indecision dominates.

If all three averages converge at low levels → chop zone confirmed.

This is much easier to read than raw ATR bars and gives a clear “volatility health check” at a glance.

📊 Use Case for ORB

For the ORB strategy this combo acts as a regime filter:

High ATR with EMA > SMA > RMA → best edge, breakouts follow through (like March and April).

Flat ATR with all averages clustering → indecision and drawdown periods (like August).






THIS CODE IS DERIVED FROM TRADINGVIEWS DEFAULT ATR THING