What does the ATR value translate to in pips?

Beginner Questions
1

I’m on the USDJPY 1 hour chart.

I’ve got an ATR (average true range) indicator on the chart.

The ATR value is 0.1358

What is that in pips?

How do I figure out how many pips an ATR of 0.1358 is?

My goal is to be able to set my Take Profit to 1 ATR.

In order to do that, I need to know what one ATR is, in pips.

In my case, here, 1 ATR is 0.1358, but what is that in pips?

Google was no help. The articles I found all wanted to talk about
what the ATR is how to use it as part of a strategy.

I just need the pip value my current ATR reading, which is 0.1358.

Hope this makes sense.

Thanks in advance for any light you can shed.

2 Likes
2

Short answer: the ATR figure you are asking about represents 13.58 pips.

Long answer:

When you look at a currency-pair price, can you pick out the individual pips? You should burn this into your brain: The fifth digit (regardless of where the decimal-point falls) always represents “1 pip”.

Today (Friday, October 19), USD/JPY closed at 112.511 (plus-or-minus, depending on your broker).

Let’s use a graphic to show where single pips reside in that yen-price quote.

So, in today’s USD/JPY closing price, the arrow shows the “1 pip” digit, and the digit to the right represents tenths of a pip.

JPY ATR example
JPY ATR example621×770 8.8 KB

Line up your ATR figure with your USD/JPY price so that the decimal-points are in line, and you will see that the ATR figure is a portion of the yen price. Specifically, the ATR figure is 13.58 pips.

18 Likes
3

@Clint ,

Thanks for the clarity! Big help for me!

KC

4

that was an awesome explanation, thankyou very much. Can you take it one step further… please… :slight_smile:

In an Indices chart… e.g. De30 … the price is 11131.7 and the ATR is 6,2… how many pips is my ATR stop loss trailing when it is set at 1x…

Please could someone help me out… I also have not been able to find an answer… (if the same logic as above applies it is 6,2 pips… ??) … one reason I am confused is that my trades seem to have anywhere between 50-100 pip range before being stopped out…

Thanks…
Peter

5

Thank you so much for the explanation. This problem had been bugging me for a while too. :sweat_smile:

6

That’s some good explanation there. Quite helpful for a lot of people around.

7

You can begin with calculating the value of 1 pip and then see where your trade goes. You can calculate the ATR value by looking at the pip value. Good luck.