{"id":2155,"date":"2010-02-01T22:15:24","date_gmt":"2010-02-01T16:45:24","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=2155"},"modified":"2010-02-01T22:15:24","modified_gmt":"2010-02-01T16:45:24","slug":"the-average-true-range-application-and-chart","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/the-average-true-range-application-and-chart\/","title":{"rendered":"The Average True Range : Application and Chart"},"content":{"rendered":"<p><strong> Application of Average True Range<\/strong><\/p>\n<p>The Average True Range does not usually consider the direction of progress but it surely considers \u00a0the degree of volatility However, even a small change in the level of Average True Range can provide important information regarding trading<\/p>\n<p>1) The peak of ATR is frequently at a peak or a trough.<\/p>\n<p>2) The periods of low volatility often precede large movements in prices.<\/p>\n<p>3) The course will move frequently within a horizontal range in the low values of the ATR.<\/p>\n<p><strong>Average True Range<\/strong><strong><br \/>\nUse of ATR for the Money Management<\/strong><\/p>\n<p>The ATR can successfully be used to determine the level of stop loss orders. You just need to take a multiple of the ATR and the removal or addition on the course. The multiple used depends on the following :<\/p>\n<ol>\n<li>An active trader<\/li>\n<\/ol>\n<ol>\n<li>The risk profile<\/li>\n<\/ol>\n<ol>\n<li>The capital.<\/li>\n<\/ol>\n<p>Example of a multiple of 3:<\/p>\n<p>Long GBP \/ USD at 1.6450 with an ATR 0.0014<\/p>\n<p>3 * 0.0014 = 0.0042<\/p>\n<p>1.6450 &#8211; 0.0042 = 1.6408 to stop at 42 pips<\/p>\n<p>You can then determine the size of the position for the 42 pips do not exceed your maximum permitted level loss.<\/p>\n<p><a href=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/untitled.bmp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-2156\" title=\"untitled\" src=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/untitled.bmp\" alt=\"\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Application of Average True Range The Average True Range does not usually consider the direction of progress but it surely considers \u00a0the 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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[1552,5892,5891],"class_list":{"0":"post-2155","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-general","7":"tag-average-true-range","8":"tag-average-true-range-application","9":"tag-average-true-range-chart","10":"entry","11":"has-post-thumbnail"},"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/2155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=2155"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/2155\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=2155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=2155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=2155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}