ATR Stop

Fran8

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Hi everyone
I’m going to use as stops Volatility stops in particular ATR, I know that normally people either use the standard 14 or the 20. I do not look at prices daily and I believe that weekly prices are more appropriate time frame for my trading style. If I use weekly ATR, which would be the appropriate time frame for weekly volatility? 4 weeks, 8 or how many weeks.
Thanks
 
The lookback period you use can be the same for weeklies as for dailies. It's just meant to be giving you a measure of the average period range. Going with 4 or 8 weeks may not incorporate enough periods to be meaningful.
 
There is no appropriate or inappropriate setting for anytime frame.

Obvioulsy a low setting like 5 will make the stop more sensitive to changes in volatility in the last 2 bars for example, whereas a higher setting like 100 will not budge it much.
 
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