[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: atr



PureBytes Links

Trading Reference Links

Al,
    If you used a ATR(1) and then plotted a 10 day simple moving average
of   this ATR(1)..... it should calculate the same value as an ATR(10).
Now  if you needed an "Exponential ATR" you could plot a 10 exponential
moving average of ATR(1).
   I believe this is what the previous ( Mike) e-mail was trying to show.

    Adam


----- Original Message -----
From: "Al Taglavore" <altag@xxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Friday, July 14, 2000 3:10 AM
Subject: Re: atr


> ATR(1) would simply be the true range for one day.  I fail to see the
value
> of taking an "n" day moving average of one day.  I am looking for the
> average true range of price over "x" period of days....what is the average
> price movement for the past 10, 50 day period.  If, as is the case for
WMT,
> the 10 day ATR is   2 2/16, and the 50 day ATR is 2 7/16, after price has
> moved, during the trading day, 2 points, I would anticipate little reward
> to buy the stock as I could only presume a futhur movement of 2-7
> sixteenths.  If however, the stock fell 2 1/2 points, I have a low risk
> entry point for a countertrend trade.  If I owned the stock from a lower
> price point, after the 10/50 day ATR is reached I have a good exit point
> for my day trade.
>
> Al Taglavore
>
> ----------
> > From: Bob Jagow <bjagow@xxxxxxx>
> > To: metastock@xxxxxxxxxxxxx
> > Subject: RE: atr
> > Date: Thursday, July 13, 2000 8:28 PM
> >
> > Right. The Equis ATR(period) matches Wilder's original version and the
TR
> > isn't a builtin.
> >   ATR(1) is actually the TR so taking its ma will give SMA or EMA
> versions
> > of ATR -- Chande uses the SMA for stops.
> >
> > Bob
> >
> > -----Original Message-----
> > From: owner-metastock@xxxxxxxxxxxxx
> > [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Mike Campbell
> > Sent: Thursday, July 13, 2000 2:18 PM
> > To: metastock@xxxxxxxxxxxxx
> > Subject: Re: atr
> >
> >
> > Al Taglavore writes:
> >
> > > Neither.  As Welles Wilder developed it, a moving average was not
used.
> > > MetaStock has it programmed.  Simply pull up the indicator and type in
> the
> > > number of days.  Today's ATR is the distance from today's low to
> today's
> > > high OR from yesterdays close to today's high.....whichever is
greater.
> > > This accounts for any gaps from the previous close to the low of the
> > > current day.
> >
> > I believe you are mistaken there.  What you described is the "true
> > range" calcuation.  ATR is some moving average of THOSE values.
> >
> > Otherwise, what would the "number of days" have to do with it?
>





  • References: