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The "number of days" is the sum of the days that you want to average. That
is the average true range for "n" number of days. I use 10 and 50. You
can then apply a moving average to the average true range if one wanted to.
Pull up a chart, pull up the indicator Average True Range and select "n"
days. Now place the moving average indicator on the ATR plot. That line
will represent the moving average of "n" days of the ATR. I cannot speak
for the value of this, as I am not interested in the moving average, I use
the average number only. Plot it on a chart and see the difference.
Al Taglavore
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> From: Mike Campbell <ug@xxxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: atr
> Date: Thursday, July 13, 2000 4:18 PM
>
> 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?
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