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SVE_Stop_Trail_ATR ATR was developed by J. The basic ATR trailing stop trading method formula will switch from support to resistance and visa-versa when breaking support or resistance. For the ATR trailing stop method we calculate the maximum allowed loss based on the basic ATR function multiplied by a factor. Additionally I am showing you the formula to use an ATR trailing stop from a start date for either a long or a short trade. It is clear that the trailing stop based on ATR is a dynamic stop related to the higher or lower volatility in price action. You can make the ATR trailing stop more or less sensitive by using different multiplication factors.
Apply the ATR trailing stop at past data to find the best fitting value and apply this value for future data. Using your own trading method finding entry points you most probably would like to have this trailing stop available from your own entry date. ATR trailing stop long position from a starting date. Please make sure that the date you select is an existing date in the data series. ATR trailing stop short position from a starting date. Find a Stock ticker symbol, enter the ticker and find a chart, news, fundamentals and historical quotes.
Developed by Wilder, ATR gives Forex traders a feel of what the historical volatility was in order to prepare for trading in the actual market. Forex currency pairs that get lower ATR readings suggest lower market volatility, while currency pairs with higher ATR indicator readings require appropriate trading adjustments according to higher volatility. During more volatile markets ATR moves up, during less volatile market ATR moves down. When price bars are short, means there was little ground covered from high to low during the day, then Forex traders will see ATR indicator moving lower. If price bars begin to grow and become larger, representing a larger true range, ATR indicator line will rise. ATR indicator doesn’t show a trend or a trend duration.