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Hi Al,
I never thought about using ATR as a stop......I will experiment with
this idea. I, also believe the ATR to be better for adjusting to market
volatility than using a fixed value or percent. Thanks Al, and please
share any further thought you may have on this issue!
Best wishes,
Adam Hefner.
VonHef@xxxxxxxxxxxxx
---------------------------------------
----- Original Message -----
From: Al Taglavore <altag@xxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Monday, May 03, 1999 5:03 AM
Subject: Re: Support or Resistance Penatration question
> 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
> ----------
> > 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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