How to Use ATR Indicator?

 

ATR (Average True Range) is an easy to read technical indicator designed to read market volatility. When a Forex trader knows how to read ATR, they can use current volatility to gauge the placement of stop and limit orders on existing positions.

Every trader is different and, as a result, stop placement is not a one-size-fits-all endeavor. High values suggest that stops be wider, as well as entry points to prevent having the market move quickly against you. This provides entry points for the day, with stops being placed to close the trade with a loss if prices return to the close of that first bar of the day. A two-month low stop is an enormous stop, but it makes sense for the position trader who makes just a few trades per year.

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Technical Analysis. Average True Range (ATR) Share: The Average True Range (ATR) was initially developed for commodity traders to measure market volatility, but traders of other instruments have added ATR to charts to determine volatility as well as to identify possible trend tops and bottoms. buyacompanylaw.ml is a registered FCM and RFED with the.

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