A little bit of confusion, if you guys can help me out here. When utilizing the ATR for stop losses do I use the ATR value for the current bar or the previous bar to take into account the close for that day? I use the daily time frame if that helps. Thanks in advance!
if you trade the daily shouldn’t it be only logical to trade based on the AWR? (Average Weekly Range) or even AMR (monthly) if you can handle it?
Hi…
Read this…
Cheers
You would take the value from the bar before the current bar (as this is fixed and can’t change). Remember the ATR is the Average True Range, so it is smoothing out previous bars ranges for you already. Depending on the system and timeframe some like to multiple the ATR for the stop by 1.5 as is taught in some literature.