Re: Does the ATR have any meaning in Forex?
I had not thought about using the ATR to decide when to leave, but it makes a lot of sense.Knowing when a movement is losing strength is crucial to protect the profits that have already been achieved.I will pay more attention to the ATR at the time when the market seems to be losing impulse.Thanks for the idea, it seems very useful!
Re: Does the ATR have any meaning in Forex?
One more thing: remember that the ATR is a measure of past volatility.The future will not predict you.It only gives you an idea of ??how the market has been in recent days or weeks.Use it as a reference, but don't expect to tell you what is going to happen.You should always combine it with other indicators or technical analysis to have a better idea of ??what could happen.
Re: Does the ATR have any meaning in Forex?
Yes, the ATR is retrospective.Do not be fooled by thinking that because the Atur has climbed, the market will continue to move the same.Sometimes, an increase in volatility precedes correction or consolidation.The ATR shows you what happened, but it will never be a glass ball.Be careful with that!
Re: Does the ATR have any meaning in Forex?
It is good to know that the ATR only measures past volatility.I do not want to fall into the trap of thinking that it will tell me what will happen in the future.I will definitely use it as a complementary tool, not as my main source of prediction.I will continue adjusting my strategy with that in mind.Thanks for the clarification, it is very useful for not misunderstanding the indicator!