Average True Range - ATR Expert Advisor Setup - Setting Up Average True Range - ATR Expert Advisor
Average True Range - ATR Expert Advisor Setup - Setting Up Average True Range - ATR Expert Advisor - A trader can come up with an Average True Range - ATR EA based on the awesome indicator explained below.
Average True Range - ATR EA rules can be combined with other Forex technical indicators to come up with other Expert Advisor Forex Robots that trade using rules based on two or more indicators combined to form a trading system.
Average True Range - ATR Forex Trading Technical Analysis & ATR Signals
Developed by J. Welles Wilder
This indicator is a measure of volatility - it measures the range of price movement for a particular price period. The ATR is a directionless indicator and it does not determine the direction of the Forex trend.
Average True Range - ATR EA Setup
High ATR values
High Average True Range indicator values indicated market bottom after a selloff.
Low ATR values
Low Average True Range values showed extended periods of sideways price movement- Price Range, such as those found at market tops and consolidation periods. Low ATR values are typical for the periods of sideways movement of long duration which happen at the top of the market and during consolidation.
Calculation
This technical indicator is calculated using the following:
- Difference between the current high and the current low
- Difference between the previous closing price & the current high
- Difference between the previous closing price and the current low
The final Average is calculated by adding these values & calculating the average.
Forex Analysis and Generating Signals
Average True Range technical indicator can be analyzed using the same principles as other volatility technical indicators.
Possible trend change signal - The higher the value of the indicator, the higher the probability of a trend change;
Measure of trend momentum - The lower the indicator's value, the weaker the trend movement.
Technical Analysis - Average True Range - ATR EA Setup