8:07 AM
Forex Bond
The Average True Range (ATR) indicator is a very popular indicator of J. Welles Wilder, author of technical analysis, which has many trading indicators, such as the Relative Strength Index and the Parabolic SAR invented invented. The ATR is an indicator of its less popular, why not create an objective trading signals. In this article you will learn to make the most of this indicator forex.
The ATR is a unique exhibition in the idea that there is an attempt to generateTrading signals - but make market volatility. The ATR shows the average volatility (range of candle) in the last 14 bars.
The main methods of negotiation with the ATR in FOREX are:
Forex Trade Alerts
Method # 1: Calculation of Stop Loss
The first method, the Average True Range indicator in Forex, is the calculation of stop loss. When designing a trading system, automatically or manually, the system must work universally - as many pairs of cost. Aa profitable system to different pairs, it is necessary to adapt the system of volatility and the different characteristics of the FOREX pairs. Which is a better way to install a system, as even in shape? With ATR, the system can automatically pairs with different volatility and thus operate without any manual intervention to separate pairs.
For example: Instead of stop-loss as a constant number (eg 20 pips), set the stop loss at ATR: 150%ATR. This makes the stop loss is 1.5 times the size of the ATR. The implementation of such an attitude leads to ensure that systems are much more adaptable to the work and many couples, without having to optimize manually.
Method 2: reversals Identification
The second method is a practical approach that is used by operators to identify the funds and lines. The method is based on the idea that if the average (one created below) True Range is a, minimum price, a turning point.Traders should pay attention to the values of ATR, and be careful with write-ups on the price, if the ATR is to create a fund.
Method # 3: Strength of the trend
The rule of thumb, is a reading of low Average True Range, the trend is weak. Higher values of ATR indicates that the trend is strong, raising the candle and the price range is gaining momentum. This is useful for evaluating the strength of the trend before a deal - if the ATR decreases, you cana sign that the trend is losing strength and a voice that is risky.
Recommend : Automatic espresso machine Fellowes 79ci shredder Canon power sd 100
Posted in: 
0 comments:
Post a Comment