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I have been reviewing my old John Murphy book "Technical Analysis Of
Futures Market".....
and he was teaching about using a 3 to 5 percent penetration of support or
resistance values
before they are confirmed to have broken. Do any of you make such
calculations? I am
considering using a multiple of the "Average True Range" and then
adding/subtracting
this value to the S/R value. For example: if resistance was at 1300 and I am
using half of
ATR of 20......then my confirmation would be at 1310. I like the Idea of
using ATR to help
compensate for volatility. What do you guys think? How do you Traders do it?
Best wishes,
Adam Hefner.
VonHef@xxxxxxxxxxxxx
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