How to read and use ATR?

Beginner Questions
1

what is your take?:60:

finance.yahoo.com/news/atr-forex-strategy-190000067.html

i read the above link but it doesn’t seem to say how to use it…?:26:

is it the same as seeing the trend of the chart?

thanks!:slight_smile:

2

ATR is not the same as the trend of the chart. It only says if the price is moving or not.
If the price does not move the ATR will be close to 0.
If the price moves down, the ATR moves up.
If the price moves up, the ATR moves up.
If the price moves down, then up, the ATR moves up and up again. The ATR will go down only if the price start to hold around a price.

ATR is generally used to avoid trading when the price does not move, to not get false signals from some MA cross over for example while the price is stuck un a narrow rectangle at night.

If you are looking for an indicator following the trend, check out the CCI or the RSI maybe.

3

Found an old post by Pipcrawler about this. Hope this helps: Using ATR to Calculate Potential S&R Levels Daily | Forex Blog: Pick of the Day

4

Some one please help me to know who to read ATR for Palladium, Platinum, Silver and Gold