Application of Average True Range The Average True Range does not usually consider the direction of progress but it surely considers the degree of volatility However, even a small change in the level of Average True Range can provide important information regarding trading 1) The peak of ATR is frequently at a peak or a trough. 2) The periods of low volatility often … [Read more...]
The Average True Range : The Concept
The Average True Range, by definition, is a simple and fantastic measure of volatility and market noise. Interestingly, the average true range (ATR) tells you a security’s volatility over a given period. In other words, it gives you the tendency of a security to move, in either direction. The average true range, more specifically, is the (moving) average of the true range … [Read more...]
Average True Range, ATR
Average True Range or ATR is one popular volatility indicator which can be used by traders of all kinds. It was introduced by J. Welles Wilder in 1978 in his book “New Concepts in Technical Trading Systems”. Although the indicator was developed for commodity futures market, it can be used to trade all financial instruments including stocks and forex currencies.ATR. It is a … [Read more...]
Renko Charts – the concept ( Explained )
Renko charts are price charts with rising and falling diagonal lines of boxes that are either filled or hollow. Renko charts are "time independent" charts that do not have constantly spaced time axes. A type of chart, developed by the Japanese, that is only concerned with price movement; time and volume are not included. It is thought to be named for the Japanese word for … [Read more...]
Kagi Charts
Kagi charts are price charts with thick and thin vertical lines connected by short horizontal lines. it is a type of chart developed by the Japanese in the 1870s that uses a series of vertical lines to illustrate general levels of supply and demand for certain assets. Thick lines are drawn when the price of the underlying asset breaks above the previous high price and is … [Read more...]