Do you know about Average True Range Oscillator Indicator Trading Strategy

Average True Range

Dear Friends, Average True Range wo indicator hay jo market ki volatility mearsure karny k leay use hota hai. Bhot sary indicators ki tarha Average True Range indicator market ma commodities or pairs ki daily ki prices ko use karta hai. Forex trading ma pairs sy zayada commodities ma volatility hoti hai. Commodities ma hamy aksar gap moves b nazar aty hain. Ye gaps ham commodities ma zayada dakhny ko melty hain.





Volatility In Market

Commodity ki volatility us k high or low price par depend karta hai. Ye atr indicator forex trading ma market ki direction ko show ni karta balky ye market ki volatility ko show karta hai. Mazeed agy discuss karny k lae hamy true range par focus karna ho ga.




True Range

Agr ham current high ma sy current low ki value ko minus karyn to hamy TR ki value hasil ho jae gi. Second method ye hai k agr ham current high ma sy previous close ki value ko minus kar deyn to b hamy ye TR ki valur hasil ho jaye gi. Thirdly current close ma sy ham agr ham previous close ko minus kar dey to b hamy true range ki value hasil ho jae gi.






ATR Calculation Mathod

ATR ki value ko auto sy 14 periods par set kiya jata hai. Ye intraday, weekly or daily basis par b calculate kiya ha sakta hai. Es purpose k lae atr daily basis ki value par depend karti hai. ATR rsi or macd indicator ki tarha ni hai kiu k market ki direction pae kio information provide ni karta. Ye forex ka volatility indicator hai or yr market k utar charhao ko show karta hai. But forex ma ye zehan ma rakhna chahe k kio b indicator market ma 100 percent results ni deta. Indicator sy maximum result gain karny k lae trader ko apna experience esk sath use karna hota hai tb he market ma profit k hasool ma madad mel sakti hai. Jo trader forex ma indicators ko blindly use karta hai wo hamesa loss ma he rehta hai.





Price Up / Down Rules theory ATR

ATR hamen serff trend ky baray me hi nhi btata bal kay sirf price k utar charhaao ki indication daita ha, true range k liay hmain current period ki high aur low range aur previous period ki close range chaiay hoti ha, true range k liay hmain three calculations kar k unhain compare karna hota ha

1. current period ki low range ko current period ki high sa minus kar dia jata ha.

2. previous period ki close range ko current period high k magnitude sa minus karain.

3. previous period ki close range ko current period low k magnitude sa minus karain,



Direction Measure

ATR price ki direction ko measure nhi karta, bal kay sirf volatility btata ha, lihaza is ma koi negative value nhi hogi, jb ap k pass true range ki value aa jay to tb ATR plott kia ja sakay ga, ATR market ki high aur low volatility k periods ko identify karta ha, is tarah market ki volatility ko measure kar k hm buy aur sell signals ko identify kar saktay hain aur sath ma risk/reward potential ko b jan saktay hain.

Re: Do you know about Average True Range Oscillator Indicator Trading Strategy

Yes dear, Average true range aik technical indicator hay jisko J. Welles Wilder junior na introduce kia, ye indicator market main volatility ya price moment ki certain levels par degree ko measure karta hay, ye indicator originaly comodity trading kay liay design kia gia,

Working principles of ATR:





ATR percentage change ki bjay prices main absolute values par base karta hay, is tarah aisa pair ya commodity jiski higher price ho gi uska ATR bhi high ho ga aur low price ki sirat main ATR bhi low hoga, ye indicator kisi pair ka true range maloom karnay kay liay gaps, small high-low ranges aur limit moves ko bhi janchta hay, ATR Commodity trading kay ilawa dusray pairs, stocks aur derivatives kay liay bhi use kia jata hay,

Calculations of ATR:



ATR ki calculation main two steps hotay hain, pehlay step main perticular pair ka true range maloom kia jata hay aur phr us true range ko smooth karnay kay liay moving average lia jata hay, ye moving average true range ka moving average nhi hota, jab true range hasil ho jata hay to phr is result ko previous ATR sa aik period less kar kay multiply kartay hain aur phr is current ATR ko average period sa divide kartay hain, lihaza 14 period kay liay ATR calculatr karnay kay ye formula banta hay,

ATR = {(previous ATR x 13) + Current TR } / 14

Uses of ATR:




ATR traders ko price direction ka nhi btata balkay ye price breakouts ko strongly indicate karta hay, agr ATR increase ho raha ho to price breakout kay liay support bhi increase ho rahi hoti hay, ATR stoploss levels ko janchnay kay liay bhi use hota hay aur higher ATR kay liay higher stoploss required hota hay