Part 69 | ATR Indicator
ATR stands for Average True Range—it shows how much the price moves on average. It’s best used for setting stop-losses: Stop = Entry ± 1.5 × ATR. This way, you set your stop based on science, not guesswork.
How to use it:
1. Calculate the ATR; 1.5 × ATR = stop distance
2. Higher ATR = wider stop = smaller position
3. Lower ATR = a tighter stop may work
Remember: A stop set by guesswork either gets hit too soon or is unnecessarily far away.
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#TechnicalAnalysis #TradingView #Indicators $ETH
ATR stands for Average True Range—it shows how much the price moves on average. It’s best used for setting stop-losses: Stop = Entry ± 1.5 × ATR. This way, you set your stop based on science, not guesswork.
How to use it:
1. Calculate the ATR; 1.5 × ATR = stop distance
2. Higher ATR = wider stop = smaller position
3. Lower ATR = a tighter stop may work
Remember: A stop set by guesswork either gets hit too soon or is unnecessarily far away.
Follow 👇
#TechnicalAnalysis #TradingView #Indicators $ETH