ForexGen's
Average True Range can often reach a high value at the bottom of the market
after a sheer fall in prices occasioned by panic selling. Low values of the
indicator are typical for the periods of sideways movement of long duration
which happen at the top of the market and during consolidation. Average True
Range can be interpreted according to the same principles as other volatility
indicators. The principle of forecasting based on this indicator can be worded
the following way: the higher the value of the indicator, the higher the
probability of a trend change; the lower the indicator’s value, the weaker the
trend’s movement is.
Thursday, December 11, 2008
Forexgen
presents Average True Range Technical Indicator (ATR)…As it is an indicator
that shows volatility of the market. It was introduced by Welles Wilder in his
book "New concepts in technical trading systems". This indicator has
been used as a component of numerous other indicators and trading systems ever
since.
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