Confused with ATR in FOREX

[corei]

I am confused with ATR in Forex for pairs that have low currency rate .

e.g. AUD/NOK . The curency rate is 5 , when I set ATR indicator , the reading is 11.87, the ATR is higher than the currency rate itself ?

How to get correct ATR value with this pair.

Thx!!!

 

[Calinor]

The GBPUSD exchange rate is 1.59 approx, but when you're trading,you're trading pips, so your chart should show 15,900. The daily ATR of this then ould be 200-300 (more than 1.59 obviously) for example. It is not a problem to say the exhange rate is 1.50, and the ATR is 200-300. Because the ATR is referring to the points/pips, and the exchange rate you quote is referring to cents, pence or whatever.

 

[GammaJammer]

Fine, but then I bet you any money you like AUD/NOK ATR isn't 11.87 pips. It does seem odd to me.

 

[Shakone]

Well that would depend on what time frame he was looking at, wouldn't it? If he is looking at a 5 min chart ATR, or a 1 min chart...