15) Using a 'percent-based' ATR (Average True Range) Volatility Filter

Using a percent-based ATR as a Volatility Filter is more effective than the standard ATR indicator and is more suitable for trading multiple asset classes. This is because the standard ATR calculation is neither range-bound nor based on relative price values. The percent-based ATR, however, is based on the volatility as a percent of the price, meaning that similar levels on the indicator can be used across asset classes with a wide variance of prices e.g. Stock Indices and Forex.

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Content Disclaimer: The contents of this video (and all other videos by the presenter) are for educational purposes only, and are not to be construed as financial and/or investment advice.