|
PureBytes Links
Trading Reference Links
|
In a message dated 7/13/00 8:44:43 AM Pacific Daylight Time, altag@xxxxxxxxxx
writes:
<< I agree, John. Would it not be more practical and in tune with the market
to set the exit (I do not use stops) based on the ATR of the stock?
Volitility of each issue is then factored into the trade. I know that
Chuck Lebeau has done extensive work on ATR, as have many others. Any
comments, Chuck?
Al Taglavore >>
I like to use ATR for screening for stocks that I want to watch and also for
assistance in entries and exits. I find that it is a very valuable tool.
For stock screening I calculate a 20 day or 50 day ATR and divide the ATR by
the most recent closing price to get a percentage volatility number. For
short term stock trading I like to see a number between 3% (.03) and 8%
(.08). Generally the more volatile stocks will produce faster profits which
is what I am looking for.
I have a lengthy description of some of these methods and their results
posted on a new web site at StreakingStocks.com. This new site is not really
open for business yet but some of you may enjoy seeing a preview and maybe
helping us Beta test it.
I can't explain all I know about using ATR in one brief message but if there
are any specific questions I would be happy to answer them on the list.
Chuck LeBeau
chuck@xxxxxxxxxxxxxxxxxxx
|