ADR and ATR

Interesting!
I have been using ATR for takeprofit and stoploss in scalping bots for years. It works really well! something like this

stoploss=atratrslfactor;
takeprofit=atr
atrtpfactor;

Its a simple concept. Your take profit and stoploss are more dynamic and based on market conditions.
Although if you were manually trading you could just draw a pair of straight lines to determine the market range… You can use it for a particular day, or particular session, etc…

Also use atr for lot size (risk) . Usually there is less risk in a ranging market. (depending on system).

Anyway, it is a very useful indicator.

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