Hi Keith,
Without the context of instrument and timeframe, I can't comment on the figures you provide I'm afraid.
For a good article explaining what ATR is, read this: The Average True Range Indicator
It's primary use is to measure the volatility of an instrument which, in turn, is a useful aid to deciding on an appropriate position size. For more on this, check out this article: Position Sizing as an Approach to Risk Management
Tim.
Hi everyone,
Bit of a silly question probably but can anyone tell me how to read this ATR value please?
1.1807
I thought it was based on the last 3 digits i.e. 0.0123 mean an ATR of 123 pips but I'm confused by the larger number.
Cheers,
Keith
The problem I have is what period to use with ATR. This is too vague of an indicator.
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