Zen Trading Tech

Scalping is all about precision and timing. And one of the biggest mistakes traders make? Ignoring volatility. That’s where ABR Levels (Average Bar Range Levels) come in – a simple but powerful tool to help you scale your trades dynamically and avoid unnecessary losses.

What Are ABR Levels?

ABR Levels calculate the average bar range of your instrument and display key levels in the top-right corner of your chart.

Options to show:

• 0.5x ABR – Half of the average bar range
• 1x ABR – The full average bar range
• 2x ABR – Double the average bar range
• 4x ABR – Double the average bar range

This gives you a real-time gauge of volatility, so you can adapt your trade sizes accordingly.

Why Use ABR Levels?

One of the fastest ways to blow up your account is by using the same trade size regardless of market conditions. A session with low volatility requires larger size, smaller stops. A high-volatility session? Smaller size, wider stops.

ABR Levels help you adjust dynamically instead of guessing.

Custom Setting: Lookback Period

The only custom setting in ABR Levels is the lookback period used to calculate the average range. I keep mine at 8, which I’ve found works best for my trading. Some traders use 4 for a faster response, while others prefer a larger number for a smoother average. I prefer to keep it the same at 8, as consistency is key.

How I Use It

I know the typical volatility of the instruments I trade. For example, on ES (E-mini S&P 500):

• A normal bar range is around 5 points
• Scalps range between 5-10 points
• Swings range between 20+ points

Last week, volatility increased:

• Scalps moved up to 10 point+
• Swings stretched to 30-40 points

With ABR Levels, I can quickly assess market conditions and adjust my trade size accordingly. No guessing, no surprises.

A Key Risk Management Note

Traders should not enter trades looking to take half-R profit.

If a trade goes badly, you might manage it to one-R, half-R, or break even, but if you aim for half-R from the start, you’ll likely end up taking even less. Over time, the math will kill your account for the majority of traders.

How to Get ABR Levels

This is a FREE TradingView indicator – I’ll drop the link below so you can add it to your chart and start using it today.

(The code is open source, so if you don’t use TradingView, just copy the code into any AI and it will generate it for your platform.)

Final Thoughts

ABR Levels are a must-have for scalpers and active traders. It’s a simple way to practice risk management, avoid oversized losses, and stay in sync with the market.

Don’t trade blind. Add ABR Levels to your chart, adjust your risk dynamically, and trade smarter.