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Thanks a lot Chuck !
Very Interesting.
Theo Lockefeer
----- Original Message -----
From: <CRLeBeau@xxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Saturday, September 09, 2000 9:56 PM
Subject: Re: Interpretation of ATR
> In a message dated 9/7/00 3:07:07 AM Pacific Daylight Time,
> sky40912@xxxxxxxxx writes:
>
> << Can someone of our experts explain me about the ATR ?
> (of course i know what the ATR is measuring). >>
>
>
> AverageTrueRange has all sorts of valuable applications. It can be used
as a
> trend indicator (if the recent high is X ATRS above the low, the trend is
> up), it can be used for setting risk control stops (exit at 2 ATRs below
> entry price), it can be used to set profit objectives (take profit when
> profit reaches 4 ATRs), it can be used as an entry setup condition (ATR
must
> be at least X dollars) or (ATR must not be greater than 125% of normal)
and
> so on.
>
> I have lots of information on using ATR in the educational Bulletins that
are
> archived on my traderclub.com web site. This information is free and can
be
> found at http://www.traderclub.com/discus/board.html (click on Bulletins,
> there are 41 Bulletins archived there).
>
> ATR can be very helpful because it allows systems to adapt automatically
to
> changes in market conditions and therefore helps to make systems more
robust.
>
> ATR is a powerful tool with many uses. Hope this brief response helps
> motivate you to investigate further.
>
> Chuck Le Beau
> traderclub.com
>
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