ஏ டீ ஆர் இண்டிகேட்டர் | ATR indicator | Average True Range Indicator - Indian investor Tamil

Average True Range Indicator strategy explanation and how to use ATR in trading window. Using ATR value stop loss. ATR used to analyse the stocks on average price movement. It d't initiate the price direction.

What is ATR indicator ?

1) Average True Range is a tool used in technical analysis to measure volatility

2) The higher ATR value then higher level of volatility.

3) True Range is the greatest of the following three values

a) Current High - current Low Method (today's high to today's low)

b) Current High - previous Close Method(yesterday's close to today's high)

C) Current Low - previous Close Method (yesterday's close to today's low)

4) The values are recorded each day, and then an average is taken

How to use ATR ?

The ATR indicator moves up and down as price moves

When ATR moving up then more volatility or market is up trend

ATR indicator when moving down less volatility or market is down trend

How to Place a stop loss based on ATR

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