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Adam,
I use ATR as a cornerstone to all that I do. To me, it's like a roadmap in
that it lets me know where I am within a price range. Gur Dillon (spelling
questionable) taught this in a course I attended two years ago. A
percentage of ATR was his price target and his stop. As I recall, he used
1 1/2 of ATR as a stop. If you have futhur interest, I can re-read my
notes when I go to my office tomorrow and post accordingly. Seems to me
that ATR shows a quicker response to what the market is saying than moving
averages, oscillators, etc. I use a 10 day ATR.
Al Taglavore
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> From: VonHef <VonHef@xxxxxxxxxxxxx>
> To: MetaStock <metastock@xxxxxxxxxxxxx>
> Subject: Support or Resistance Penatration question
> Date: Sunday, May 02, 1999 11:59 PM
>
> 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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