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Good afternoon all,
I must have deleted the original post to this thread. Would anyone mind
filling me in what ATR stands for. I find the discussion fascinating, but I
just can't think what ATR means. Also, is it a canned MS indicator or a
"build your own"?
Many thanks,
Bill N.
Milwaukee, WI USA
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-----Original Message-----
From: Yngvi Hardarson <hardy@xxxxxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Date: Wednesday, September 02, 1998 04:33 PM
Subject: Re: Exit strategies
>Al!
>
>That's simply:
>
>ATR(3) - ATR (10)
>
>Naturally low values of this oscillator precede big price changes in a
>similar fashion as low volatility measured by standard deviation or narrow
>Bollinger bands does. However the direction of the breakout from these
>narrow ranges can be hard to foresee. Mostly in the direction of the trend
>I assume.
>
>Since I know you trade currencies you can check this out on the DMark, the
>Swiss frank or the Japanese yen. Using an ATR oscillator I guess that one
>is not making the same assumptions regarding the probability distributions
>as are implicit when using the standard deviation of a percent change.
>
>You will see that the same seems to apply more generally, e.g. stock
>indices, etc. The number of time periods most effective for measuring the
>"relative quiteness" of markets probably differs.
>
>Best regards,
>Yngvi
>
>At 12:37 PM 02-09-98 -0500, you wrote:
>>On daily charts, I use a 10 period ATR and a 3 period ATR. If I knew
>>enough about formulas, I would set an oscillator to chart the difference
>>and, test if this precedes change. On weekly charts, I use a 4 period ATR
>>and a 1 period ATR. If you will set this up, you will see how, with few
>>exceptions, the 4/weekly and 10/daily ATR's are constant enough to be
>>valuable in anticipating when the move is over and how far it will go.
>
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