How to use ATR Indicator? | Forex Factory

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How to use ATR Indicator?

  • #1
  • First Post: Mar 13, 2010 10:37pm Mar 13, 2010 10:37pm
Hi all.

How do i read the ATR value when i want to use it as a SL. The ATR values for pairs without the JPY are in 4 decimal places. Do i jsut take the last two? and for those pairs with the JPY take the 1st 2.?

eg. EUR/ USD ATR (period 14) 1.2345 Do i use 0.0045?
and EUR/JPY ATR (period 14) 1.23 do i take 0.23?

thanks
  • #2
  • Mar 14, 2010 3:28am Mar 14, 2010 3:28am
Quoting George.soros
Hi all.

How do i read the ATR value when i want to use it as a SL. The ATR values for pairs without the JPY are in 4 decimal places. Do i jsut take the last two? and for those pairs with the JPY take the 1st 2.?

eg. EUR/ USD ATR (period 14) 1.2345 Do i use 0.0045?
and EUR/JPY ATR (period 14) 1.23 do i take 0.23?

thanks
The ATR indicator shows the average range of change for the currency pair during the certain period, so, the whole value should be used. I don't know how can ATR(14) show something like 1.2345 for EUR/USD. On a daily chart it currently shows 0.0135 for me. The whole this value should be used if you want to set up SL and TP based on ATR. Of course you don't have to set SL or TP exactly to this value; you can multiply it depending on your risk allowance, reward plans and other expectations.
  • #3
  • Mar 14, 2010 2:16pm Mar 14, 2010 2:16pm
Quoting enivid
The ATR indicator shows the average range of change for the currency pair during the certain period, so, the whole value should be used.
I'm confused by this, too ... for example, ATR on EUR/USD is 0.0137 and on USD/JPY it's 0.8885 ... 137 makes sense as a stoploss for EUR, but what would you use for the Yen ... is it 88??
  • #4
  • Mar 14, 2010 2:25pm Mar 14, 2010 2:25pm
Quoting tbardolph
I'm confused by this, too ... for example, ATR on EUR/USD is 0.0137 and on USD/JPY it's 0.8885 ... 137 makes sense as a stoploss for EUR, but what would you use for the Yen ... is it 88??
You take the value of ATR(SYMBOL) * Marketinfo(SYMBOL,MODE_POINT)

Scoobs.
  • #5
  • Mar 15, 2010 2:59am Mar 15, 2010 2:59am
Quoting tbardolph
I'm confused by this, too ... for example, ATR on EUR/USD is 0.0137 and on USD/JPY it's 0.8885 ... 137 makes sense as a stoploss for EUR, but what would you use for the Yen ... is it 88??
Yes, it's 88 if you like rounded values and in pips. It's OK for EUR/USD to vary by 0.0137 during a period and for USD/JPY to vary by 0.8885 during a period. But MetaQuotes should have added "digits" input parameter to make things more clear.
  • #6
  • Last Post: Feb 18, 2011 5:43am Feb 18, 2011 5:43am
Quoting George.soros
Hi all.

How do i read the ATR value when i want to use it as a SL. The ATR values for pairs without the JPY are in 4 decimal places. Do i jsut take the last two? and for those pairs with the JPY take the 1st 2.?

eg. EUR/ USD ATR (period 14) 1.2345 Do i use 0.0045?
and EUR/JPY ATR (period 14) 1.23 do i take 0.23?

thanks

why default is 14 for P = the measurement period for the ATR

not 10, 20 , etc ?

any comments ?

thanks
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