Guys, The Average True Range (ATR) is like your volatility sidekick in trading.
It's an amazing & free method to trail SL according to the volatility.
Simple steps -
It's an amazing & free method to trail SL according to the volatility.
Simple steps -
Step 1. Get the ATR for the index you're trading. Search Average True Range Band in Tradingview.
Step 2 - Apply these settings shown in this image. Keep the rest as default.
Also Tick ON the "Show Table for Stops & Targets" column.
Also Tick ON the "Show Table for Stops & Targets" column.
Step 3 - Now, you will see a box with numbers appeing in bottom right. (See pic)
With formation of each Candle, as per your chosen Timeframe, the numbers will change.
With formation of each Candle, as per your chosen Timeframe, the numbers will change.
Step 4 - When you are Long, trail your SL according to the Long ATR Stop values
When you are Short, trail your SL according to the Short ATR Stop values.
In this pic, if you are short, SL will be at 21550. See arrow.
When you are Short, trail your SL according to the Short ATR Stop values.
In this pic, if you are short, SL will be at 21550. See arrow.
Step 5 - Exit with profits when the Index/stock chart touches the ATR band.
See example.
Plz note - ATR is NOT used to initiate the trade, for that you'll have to use OI data, Price Acion or any other method as per your expertise.
See example.
Plz note - ATR is NOT used to initiate the trade, for that you'll have to use OI data, Price Acion or any other method as per your expertise.
Principle - ATR is based on volatility. When volatility increase, ATR value will increase & your SL will be bigger so that it doesn't get hit unnecessarily.
Also,
Also,
Result season is starting soon so I will be taking a free live session on "How to take Result Based Trades" this Friday.
Join t.me to get the Zoom link.
Retweet the first tweet below to help fellow traders.
Thank you.
Join t.me to get the Zoom link.
Retweet the first tweet below to help fellow traders.
Thank you.
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