ATR (average true range)

The Average True Range, or ATR, is an indicator that is used to help gauge the volatility of a given currency pair on any timeframe. Many traders use this information to help determine their stop size. For example, if the EUR/USD shows an ATR of 0.0031 on the 60 minute charts then a day trader might use a stop-loss of 31 pips (before spread). This would help to weed out any natural "whip-saw" motion of the currency pair and protect your original trade idea. Advanced: the average/default period for ATR is 14, meaning it takes into account the last 14 candlesticks on the timeframe you are looking at.

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  1. mmk
    June 19, 2010 at 23:16Reply

    i did read the atr also in help topic of meta trader but i was unable to calculate according to that kindly if u will elaborate that how to calculate atr of if posible with any graph example. i will be thankful
    with regards,
    Muhammad Mubashir Khalid

  2. Moses kwagam dogari
    October 26, 2012 at 14:57Reply

    Please how do I read the ATR

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