Average True Range - ATR EA Setup - Setting Up Average True Range - ATR Expert Advisor
Average True Range - ATR EA Setup - Forex ATR EA - A trader can come up with an Average True Range - ATR Expert Advisor based on the awesome indicator explained below.
Average True Range - ATR Expert Advisor rules can be combined with other indicators to come up with other Expert Advisor Bots that trade using rules based on two or more indicators combined to form a system.
Average True Range - ATR Analysis and ATR Signals
Created by J. Welles Wilder
This indicator is a measure of volatility - it measures the range of price movement for a particular price period. The ATR is a directionless indicator & it does not determine the direction of the trend.
Average True Range - ATR Expert Advisor Setup
High ATR values
High ATR values indicated market bottoms after a sell off.
Low ATR values
Low ATR values showed extended periods of sideways price movement- Price Range, such as those found at market tops & consolidation periods. Low ATR values are typical for the periods of sideways movement of long duration which happen at the top of the market and during consolidation.
Calculation
This indicator is calculated using the following:
- Difference between the current high and the current low
- Difference between the previous closing price & the current high
- Difference between the previous closing price and the current low
The final Average is calculated by adding these values & calculating the average.
Forex Technical Analysis & How to Generate Signals
ATR indicator can be analyzed using the same principles as other volatility indicators.
Possible trend change signal - The higher the value of indicator, the higher the probability of a trend change;
Measure of trend momentum - The lower the indicator’s value, the weaker the market trend movement.
Technical Analysis - Forex Average True Range - ATR Expert Advisor Setup
