Does the ATR have any meaning in Forex?

[CaktsCakts]

I have been reading about the ATR and I wonder if it has any meaning in Forex.If you have it, do you simply choose a time frame and calculate the ATR?Or, since this is a 24 -hour market, perhaps the ATR does not mean much.What would you consider as a "day" to determine the Daily ATR?Or maybe it doesn't matter whenever you use a consistent 24 -hour period?

[jSocaSagustes]

I have heard that the ATR is used in risk management, to calculate the stop-loss, and I know that some people use it for that.

[rounes89]

To save the work, I already found what you need.[Google Ath] (http://www.google.co.uk/search?q=at...b301gb307&sa=2

[axnaSa89r]

Correct, I think they use the ATR to measure volatility and apply it as a percentage in risk management, instead of using a fixed percentage as the typical 1-2% of the account balance.It sounds interesting.Has anyone succeeded developing a risk management system using the ATR?

[ovixuu91]

I often use it to calculate the size of the positions and the gains objectives.

[oSCaronuTk1984ax]

Interesting.Could you explain how you use it and in what time frames do you operate?I would like to know more details.

[OidoCa]

You can use the ATR to determine the size of your position.First, you calculate how much you are willing to risk by operation, say 2%.If you have $ 10,000, that would be $ 200 per operation.What I do is take the 10-day ATR four times, and that is my level of stop-loss.From there, I calculate how many microltes I can open so that my maximum risk is less than $ 200.Your risk will always be how much you can lose in an operation, that is, where you place your stop-loss.

[guT123]

Therefore, the less volatile the pair is, the more units you can maintain.

[kukunha9]

I have seen that many traders use the ATR not only to calculate the Stops, but also to determine the benefits objectives.If the market is very volatile, you will adjust your goal to something more ambitious, and if the volatility is low, your goal will be more modest.The ATR is a fairly versatile tool, but everything depends on how you apply it to your trading strategy.

[CaktsCakts]

Thank you all for the answers.I had not thought about using the ATR to adjust both the Stop-Loss and the profit objective.I always thought it was just an indicator of volatility, but now I see that it has many more applications.I will start trying to calculate the size of my positions and see if I improve my risk management.I will keep you informed of my results!