wholesale jewelry supplies australia In stock and futures operation, how to use ATR to judge the bottom of different levels of trends?

jewelry wholesalers in china The general analysis and use of ATR indicators

atr index did not indicate the information direction of the price direction. Only the strength of the price change was used in the early days, the ATR indicator was mostly used in the futures market, but now it is also used now. In financial markets such as stocks and foreign exchange.

The reversal of the price trend

The high -end high or low ATR value can be regarded as a reversal of the price trend or the beginning of the next trend. As a technical indicator based on price volatility similar to the Bollinger channel, the average value of the real fluctuation cannot directly predict the price direction and its trend stability, but only indicates the frequency of trading activities. The lower ATR (that is, the smaller real volatility) indicates a relatively deserted market trading atmosphere, and the high ATR (that is, the smaller real volatility) means a more vigorous trading atmosphere. A long period of low ATR is likely to indicate that the market is accumulating power and gradually starts the next price trend (it may be the continuation of the previous trend or the reversal of the trend); a very high ATR is usually due to a short time due to a short time in a short time The sharp rise or decline in prices usually cannot be maintained at a high level for a long time.

The settings of stop loss and stopping

Tri can also use ATR to set their own transaction stop loss and stop winning price. Because ATR calculates the real range of the currency pairs in a certain period of time, this range can be used as the standard for calculating stop loss and stopping.