Hi there
Long story short. I have been reading an article describing a(nother) trading strategy where ATR is used to set the SL and TP. While the SL part is clear for me, the TP is something I'm not sure I understood.
The author writes that the take profit is calculated by this formula: (ATR Value*3 + Trade open price)
Now I understand (please correct me if I'm wrong) that the ATR works a little like this:
Example: ATR = 0.00222 (when you open the trade) so TP would be 666+trade open price. My question is: What is the trade open price? Is it the currency value, the price on the chart?
It's a little confusing because on some pairs is less than 1 (UsdChf 0.96) - so it won't matter much when he ads it to the ATRx3, while on others is more than 100 (UsdJpy 121.7).
This formula is from here.
Long story short. I have been reading an article describing a(nother) trading strategy where ATR is used to set the SL and TP. While the SL part is clear for me, the TP is something I'm not sure I understood.
The author writes that the take profit is calculated by this formula: (ATR Value*3 + Trade open price)
Now I understand (please correct me if I'm wrong) that the ATR works a little like this:
Example: ATR = 0.00222 (when you open the trade) so TP would be 666+trade open price. My question is: What is the trade open price? Is it the currency value, the price on the chart?
It's a little confusing because on some pairs is less than 1 (UsdChf 0.96) - so it won't matter much when he ads it to the ATRx3, while on others is more than 100 (UsdJpy 121.7).
This formula is from here.
Using the RobotFX EAs for a while https://www.robotfx.org/