ATR Trading Indicator – The Best Market Volatility Indicator All Traders Must Have

This is One of the best market volatility indicators, the Average True Range indicator helps traders understand the way a stock, forex, commodities, and cryptocurrencies moves. Moreover, the ATR Indicator considers large ranges that accompany strong moves.


The main idea behind the Average True Range Trading strategy is, we only want to trade when the market is ready to accelerate.

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The best Average True Range period to trade with is 10. Our team at Trader DNA has found out through extensive research that 10 sessions or 10 periods is the perfect number to measure the volatility. And it works best on the daily, 30 minute, and 1 hour chart.

 

LONG TRADE SETUP


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  • Step #1: Wait for ATR Indicator to Break Above 10-EMA
  • Step #2: Check the Price Chart to Ensure the ATR Breakout is Followed by a Price Breakout
  • Step #3: Enter Long Once We Break Above 10-period EMA
  • Step #4: Place Our Protective Stop Loss.

 

SHORT TRADE SETUP

 

  • Step #1: Wait for ATR Indicator to Break Above 10-EMA
  • Step #2: Check the Price Chart to Ensure the ATR Breakout is Followed by a Price Breakout
  • Step #3: Enter Long Short We Break Below 10-period EMA
  • Step #4: Place Our Protective Stop Loss.

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