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Hi Al and Adam!
I have used ATR and other volatility indicators in formulating STOP
strategies as well.
However one must bear in mind that ATR is normally at its lows just prior to
a big jump in volatility.
At that point the STOP may be to narrow to keep you in your trade even
though it may in principle be a winner.
Regards,
Yngvi
> -----Original Message-----
> From: owner-metastock@xxxxxxxxxxxxx
> [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of VonHef
> Sent: 3. maí 1999 12:03
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: Support or Resistance Penatration question
>
>
> 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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