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ATR

ATRSL & ATRTPYou checked the daily pattern, today is a uptrend day. On 30m & 5m chart, you draw out support & resistance levels. Current price is at the middle. You already have a good pattern price that has recenty formed a possible swing low. You checked the ATR levels at 1.25. You set the ATRSL (ATR + $1 SL, then the ATRTP (1 ATR). (Here you forgot to put the 2nd level ATRTP...is it even necessary?) The price moves slowly.. Threatening to touch but did not and price move slowly towards ATRTP. After a time, price still did not touch ATRTP or ATRSL. But moving towards ATRTP. This means new buyers are entering the markets. You can find new patterns and ATR levels after a while. You can enter new positions now or increase/decrease your ATRTP levels now. At the ATRTP, price can either reverse or continue. It depends on the price action most recently after you have entered the position. If there are obvious targets of ATRTP and S&R, price will go on. It is better to set the ATRTP level as it is difficult to catch sudden jumps in price that is only few seconds...
PEPPERSTONE:XAUUSDLong
by amir_putra
Average True Range... and BollingersATR is a great indicator designed to show you the previous ranges of the previous candles depending on the value chosen, in this example I have done 6 periods, so you can see in this chart I have highlighted when we have peaks and troughs and one thing to do is compare the times of day this activity happens, you can see at certain times the atr climbs, it stalls at others or can fall, so ATR is showing us previous candles range, so if you are in a trade you want the range to be growing usually so that your trade can head to TP, but the important thing to takeaway is the fact that price is moving alot, this is because it is experiencing higher level of trading activity price is trending, where as a falling ATR reading means typically things are slowing down or accumulating, remember this doensnt give direction though as price can still move up or down despite a falling range per candle. However what it can do is tell you good times to look for trades, you can filter down by time the best time to take trades based on your strategy winning or losing in the peaks of troughs. ATR can also be used to determine stop losses of TP, by taking the the reading and using a 2xreading stop loss or TP, the more volatile the market the bigger your stop losses and tp will be, but more volatility generally correlates well with that idea, not only does it offer greater protection it also prevents missing out on good moves. So 2nd part is Bollinger bands we can see how it works, it basically again is telling you the range of things, so Id like you to compare the reading on ATR to the Bollingers, and you can see when ATR falls and the Bollingers are squeezing tight we have very little to trade, energy is low and range is small, In crypto I have heard this term called the crab which I have to say... I do find quite amusing. When ATR is rising the Bollingers expand creating a wide cloud, so on the last box, where price falls despite ATR falling... what is the difference this time? That is right, Bollingers are not squeezed together, which tells us the ATR reading is acting like it is small and stuck in a squeezing formation but in fact we are just in an expansion of the Bollinger moving slowly. What do I want you to take away from this? Just a deeper thought about which market conditions are best for your strategy and how to avoid times which will not really offer a good trade yet ect, and have a look for patterns in how you trade around these volatility indicators! Happy trading... More to come
Education
by ZenFlo
strategy over next 3 weeks should be profitable (volatility)INTRO 15 year old trader in England comment your ideas want to know what u think Over the next 3 weeks I believe if you wait for volatility peaks or volatility consolidation trading sideways basically and then take a short or long position depending on economic data coming over this week this will create vol in the markets which will help the strategy create the ideal market conditions to take a position. This week many economic events are happening meaning markets will correlate to these events meaning there will be a reason behind the madness meaning before the data is released equites could trade sideway and then react to the data released going long or short. This strategy should be profitable while taking other fundamental and technical factors into account IS THE STRATERGY GOING TO BE SUCCESFUL volatility should increase over this week because traders will want to trade the economic data coming in this week which will mean either two things equites will consolidate or there will be a burst of liquidity over this week which could be crushed if the fed decide to hike rates even further which will cause liquidity to deuterate even further causing markets to consolidate. this means extended high volatility periods are inevitable which could mean a hard week for traders as there is no liquidity for them to exit their positions. the strategy i have outlined could be affected by this but by taking the money flow index into account before taking a trade it will mean if there is a extended period of volatility liquidity should follow but we could be trading sideways for the next few week. as i have shown here their are so many possible outcomes this week because of the pure amount of variables but if I believe this strategy will mean all of these possible situations will be tradable meaning it could be profitable over the next 3 weeks MAIN ECONMIC EVENTS THAT WILL IMPACT THE STRAT Over the next week we have the producer price index data this measures the change in input price of goods and services, it measures the input costs. if the input costs rises it will mean a decrease in profit margin for business and rising costs for the customer and if it falls decreasing costs for the customer and increasing profit margins for the business. this will impact the strategy because if the data is better investor confidence will increase in the current health of the business which will mean and increase of buyers providing liquidly to the market and of course the opposite for if the data is worse than we expected. as well as the core retail sales date which basically measures the sales at the retail level in the us which will be impacted by current consumer spending with credit spending be very high at the moment the forecast is higher than the previous. but it should be the opposite because of recessionary fears which shows a slight bit of compliancy by the American consumer. if the forecast is positive as expected it should be bullish for equites especially retail stocks such as WMT. As well as large decisions coming from the fed with the interest rate decision coming in which could completely change the markets liquidity and direction in addition to the FOMC economic projections which will affect investor confidence for the good or bad we will see. all off these factors will affect the market deeply. which will be a perfect condition for the strategy to operate
NASDAQ:NVDA
by harrybergin
Is the SPY carving out a bottom? A Bollinger and MA study. In this video I discuss the importance of the 3rd standard deviation from the 50 SMA on the SPY, QQQ, and NDX. Details in video. TLDR: The SPY has found itself at extremes: The Stochastic, the ATR, and the 3rd standard deviation (lower Bollinger Band) on the weekly timeframe all show this. Pull up the weekly SPY, add the Bollinger Band - go to settings: change the period to 50 and the stnddv to 3, add ATR, add Stochastic, add the 50 SMA - these will paint a picture of the extremes Study the corrections vs the crashes, 00', 08', 18', 20', 22' - ask yourself: is this a correction or a crash? Consider the extremes and consider the history of corrections/crashes and how they uses these extremes. I have heard this argument A LOT last week: " The NASDAQ and IWM are already at -30%.....if the SPY is to go lower that means the NASDAQ may go to -45% and THIS is not possible." ---> I beg to differ, but recognize the importance of the Bollinger bounce. Look at the dot com bubble and the housing market crash, extremes can be used as a trend line for extended periods. Remember, nothing goes straight down or up, there is always trending days/periods and range days/periods. It is best to be able to quickly identify which type of day/period you are trading in in order to ultimately use your indicators correctly. Although I remain in the bear camp, I am absolutely open to the idea of a huge massive bounce here before the 200 SMA is tested. This bounce may come with a test of the 50 SMA in the 440's - where is goes from there I am not yet ready to speculate on. Since though I am remaining bearish, I do see a higher probability of the 200 SMA being tested before the real rally to the 50 begins. Either way, I do expect a rally in the near term, news and catalysts aside. Please watch the video for a more detailed look, and please chart this out yourself to draw your own conclusions.....as these are ONLY my opinions and NOT financial advise.
AMEX:SPY
by OccamsPhazer
1
Long Scalp SPX/SPY May 04 2022We can see based on the yearly volatility , that the current expected movement is around 1.75 - 2% +- Our top is going to be 4250 Our bot is going to be 4075 From the technical analysis point, Volume was broken on the top side above 4150 and 4175 (yesterday and today POC volume) so thats a strong momentum indication for long opportunity. At the same time we can see that on 15 min we got a long entry at 4155 I believe we can go towards 4200 minimum From fundamental point of view We have the PMI release and later on today we have FOMC -> interest rate decision. This last movement is the one that bring the highest amount of volatility possible. So I strongly recommend you to be out of the position before that happens, and once the market stabilize and takes a direction, re enter again.
CME_MINI:ES1!Long
by exlux
Btcusd 29 April 2022TOP Side = 41000 - 41500 according to Implied Volatility and ATR BOT Side = 38000 - 38500 according to Implied Volatility and ATR Expected movement at 28April 00h between 3.5 - 4.5% movement during the day In terms of fundamentals that can affect BTC In terms of technical analysis, our product ONE TOOL TO RULE For 15 min gave a short entry around 39500. At the same time we can see that main concentred volume area is around 39600, so there is not so much interest above that point Conclusion: After the "rally" from yesterday, I believe today we are going to have a correction(short) movement, and close around 39000(or below)
INDEX:BTCUSDShort
by exlux
SP500 28 April 2022Close candle of 27 April = 4180 Expected opening price for today = 4210(at least based on ES movement and volume) TOP Side = 4280 - 4300 according to Implied Volatility and ATR BOT Side = 4120 - 4100 according to Implied Volatility and ATR Expected movement at 28April 00h between 1.5 - 2.5% movement during the day In terms of fundamentals that can affect SP500 At 14:30 european time(in 4h) we have the release of : US GDP US Jobless claims Both of the them are expected to lower than previous values -> Bearish Movements So final decision: Once SPX is going to get closer to 4280-4300 we can go into a short trade with SL around 4325-4330 ? and aim for 4250-4200 However all of this can changed based on whats going to happen within the first hour of SPX opening The current intraday mood for SPX is fully bearish because of yesterday. However there a high chance that within the first hour of opening we can get an Iron condor SIGNAL, with 4280/4125 aproximatively. Further update will come once the SPx opens
SP:SPX
by exlux
ATR and RSI in price actionI explain in this video how I view the relationship between ATR and RSI in true trend following situations. This is not about trend continuation or harmonics. This is on the India50 - a 2H time frame. But always one has to look higher to understand the risk and rebellions that may be ahead. Trading is not about investing. It is primarily about exploiting parts of trends. So you're in and out of the markets, to catch a slice of some trend. There are bound to be losses. You absolutely cannot make profits without suffering losses. The business of minimising losses and maximising winning positions - in trend following - has no strict formula. It is about experience in the markets. And each market/instrument has its own personality. For tend followers taking some or all profits in a deep RSI trench is a good thing. The ATR can show important trend switches. There are trading platforms that can be programmed to follow the ATR (or any other indicator), in trend following. (House rules do not permit me to mention here). On such platforms one can program a trade to close if price is above or below a certain figure on the RSI. Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
I
by Captain_Walker
Watching for a breakWatching EURJPY for a longer term play anticipating a break of the consolidation zone. Price has been on a run since March 7th so there is potential for a small retracement in price below 134.700 before further continuation higher. That 134.700 level + 1 ATR would be a my stop position on a positive break of the range here too. Downside move stop would be ATR above 136.000 whole number. 136.500 - 137.000 has been a key selling point for price action which as struggled to get much footing. If price moves into this zone on a break be very careful if volume starts to pick up. Once the level breaks however there could be a large upside. As always we'll be using our Average Daily Range tool to plot potential intra-day moves if we layer in bids on the break.
by RuckSack
DJI: More troubleWhat's happening here? 1 - There is a sharp ATR spike for the down side. 2 - Price has made a struggling rebellion (so far). At each sharp spike of the ATR price has travelled south. That doesn't mean price is bound to do the same again. However the latest spike down is even sharper than the previous two. What this means is that there is a 51% chance of further movement south (leaving 49% chance for the opposite). If price moves south, I do not know how far south as I cannot see into the future. Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
FOREXCOM:US30
by Captain_Walker
GET READY - is the DJI setting up for a major correction?In this video, I compare the movements of the DJI with the DAX. There are no predictions here. What I am saying, is to get ready. Price can move in any direction but there is a 4H ATR trendline indicating that the trend strength is for the south. As I cannot predict the future, this scenario is only relevant up to the time of posting. The markets can do as they like and prove me wrong. Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
FOREXCOM:US30
by Captain_Walker
AUDJPY(1D) - KILLZONE AHEADIt's a killzone. It doesn't mean you're going to make tons of money. In fact you have a better chance of losing money. Unfortunately - I tend to talk more about losses, cuz it's the most important thing in trading to control. Sorry! Assess your ATR, on this time frame. Know your acceptable loss. Control the loss if shorting in the killzone. Prepare to lose! All traders need to do that! Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
by Captain_Walker
3
Idea about $ZSZscaler is a cloud-based information security company. The company has more than 100 data centers with clients in 185 countries around the world. Most of the clients are located in the United States. Revenue of $673 million (2020). Capitalization of $51.2 billion. A deal for a false breakout of the extremum ($376). 1) The closing of the daily candle is far from the extreme 2) Approach to the level on candles significantly exceeding the ATR Short: $376.2 Target: $361 Stop above $381 NOT IRR.
NASDAQ:ZSShort
by Trader_Ivankov
USDJPY - LONG POSITION, Break above previous structure.EHaving broken structure looking left, there may be cause to expect price to further rise. Daily Trend - Identified as Bullish 4hr - Previous structure highs broken, printing a doji currently however, end of trading will be affecting over the weekend. Entering next bar market if no engulfing candle is present, or large jumps. Stops placed an ATR below the minor level of structure, previous red candle. Targets currently at lowest Fibonacci level identified. - Try extending Fibs from previous extension, fib inversion, etc. Lots of matching levels. Risk/Reward currently above a 1:1 however, have to check before possible entry.
Long
by shprice
Tutorial | How To Calculate "Flush Zones" Using ATRHoly sell-off Batman. Today we finally had some volatility, and a 2-3% down day in the stock indices. This range expansion seems like a perfect day to come back with another lesson on market tendencies and using ATR to calculate flush zones. What's a flush zone you ask? It's where the weak hands get flushed. For this lesson, I'm using prior session lows as the levels to measure the zone, but you can apply this concept to any significant level. And remember, you can do this with any instrument. Try it in AAPL or BTCUSD or your favorite symbol.
CME_MINI:ESZ2021Education
by RodCasilli
7
SPY Average True Range, Rising Wedge, Volume and FibsAverage True Range Analysis Price action on SPY has been getting tighter and tighter as it comes deeper into this rising wedge structure. This is most clearly viewed on the Average True Range. I have taken the standard 14 period look back and times it by 7 to get the weekly look back and we can see clear divergence. A falling true range means that there is a tightening of volatility in the market which suggest a big move is pending. I prefer the ATR to other measures of volatility, such as the bollinger band width because simply, it is easier for me to visualize the ATR and the divergence thereof. Taking a wider view on just the Average True Range and price action we can see that for the last 5 years when the weekly ATR is declining while price action is increasing we have a very strong move to the upside but then a very quick spill once the rising support is breached. As the chart also shews for the last 3 times each spill was worse than the one before. Rising Wedge Analysis Bitcoin and crypto is its own beast, but a quick look shows that rising wedges have been performing violently in a separate part of the broader market. In the first green instance the cloned trend line completely failed to act as support for price action and instead was resistance when price action basically teleported to the bottom of the wedge. On the current blue wedge we see that the cloned trend line has begun to act as some support. I personally think that it has a high chance of becoming a bear flag, but that still remains to be seen. This diversion to look at bitcoin was to shore up my supposition that we will see some potential action at the cloned trend line of SPYs resistance. We cant tell yet if it will act as resistance or support just yet. Fib and Volume Analysis A look at the top chart shows there has been almost no volume participation in this uptrend since $390. That is about a 13% drop from here and if the wedge begins to perform as suspect it may that 13% will be gone rather quickly. Price action above the upper value area often goes away impulsively. From there I would look for retracements that align with fib retracements from the C19 spill and we see a lot of activity between the previous high at 339 down to the 0.618 area at $292. Quite clearly I can't predict if/when support will give. I have an assumption that the 1.618 to 1.66 level will hold as resistance and we will see a lot of profit taking at that level. Which means SPY could walk sideways out of this rising wedge and have a slow roll over. That would be a minority position of mine. What we do see from the C19 dump is a very technical ABC correction. The ABC correction often sees Wave C go to a 1.618 extention of Wave A or greater. We see from the chart below that price action began to find support the 1.618 level and had a final stab down at the 2 level. Very likely if this breaks down as I suppose we will see an ABC correction and point B will give people a last chance to get out before price proceeds downwards or will give shorter a technical place to deploy their strategies. Once we see a prospective B wave completing the time to do the fib extension will be upon us. And as I look for that ABC correction hopefully point C will line up with some of the target areas from the main chart, supported by volume nodes. Not to layer t0o many suppositions on top of one another but I suspect we may see a bear flag/bwave around the potential channel support at the 1.414 level and we can take our ABC wave fib extension from there. The target will of course depend on how much upside that B wave shows. The chart below shows the NQ1!/SPXUSD. That paring gives us the most price action we can get on the Nasdaq and S&P500 but it comes at the cost of not being able to do any volume analysis. In general NDX does what SPX does, just with more volatility and the chart shews that. So far the pair price action has not been able to get into the previous wedge structure that it was consolidating in. That suggest to me that people are distributing NDX holdings more than they are SPY holdings and we may see NDX go down quicker than SPY From there I would be watching for a potential higher timeframe bull trap. I expound on the NDX/SPY paring in my linked ideas which are a couple months old at this point.
AMEX:SPYShort
by This_Guhy
15
DAX Increase - Upwind or even less volatility ??Hello trader, The DAX is facing the biggest reform since it was introduced in 1988. In September next year, the German benchmark index is to be expanded from 30 to 40 corporations. In addition, companies will have to meet stricter regulations in the future - also in response to the Wirecard scandal. On the other hand, after protests from investors and armaments companies, Deutsche Börse decided against the previously discussed banishment of companies that do business in controversial weapons, for example. The new 10 stocks can be found in the diagram. 8 are already determined, the 10th candidate will be either beiersdorf or Qigen. While the US markets are behaving strongly, the DAX only moves 130 times a day, so I will concentrate on other markets in the near future. ETF investors can stay relaxed: The changeover takes place automatically, without any active intervention. ETF providers will purchase securities based on the weights. The index will be calculated on the new basis from the reference date. The new companies will make up almost ten percent of the total DAX volume. The switch is not a disadvantage for investors. A Dax ETF is suitable for optimizing your regional diversification in your portfolio - we recommend, however, a look at broader European indices such as the EuroStoxx 600, or take a look at the US markets, which are behaving very strongly the DAX only scores 130 points per day. I would like to mention that all I post are just options and my own opinion ! if you like my posts smash the like👍👍 button, comment or follow me. Thanks for reading my ideas, Trade save!!
OANDA:DE30EUR
by TR7z
10
The Nasdaq 100 (NQ1!) ATR Says It's Due For A Fall Everyone can see the Nasdaq 100 is extended. Heck, the index has added nearly 1000 points in only the last few weeks. But despite the price strength, we have a sign/signal that the mighty may be ready for a fall. The 7-Day Average True Range (ATR) of the Nasdaq 100 Futures Market (NQ1!) hit the lowest level of year, and is down over 60% since May 20. I've linked to a related Video Idea on ATR below. How we're expressing a short idea: Keeping it simple. When the NQ1! hit 15670, we bought the QQQ Sep10w 375 Puts for a 1.02 debit. We'll likely spread if the trade moves in our favor this week. Risk is 50% of premium paid regardless of underlying so we stop out around .50
CME_MINI:NQ1!Short
by RodCasilli
1