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Bill,
Means Average True Range. It's in the Metastock drop down list of
indicators.
Regards
Ian Burgoyne, Melbourne
William F. Nakielski wrote:
>
> 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
> ****************************************************************************
> ************************
>
> -----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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