what is atr average true range indicator:

Asslam O Alikum:



dear members!
umeed ha aap sb khair khairiat se hn gy or apka last trading week bahut acha gaya ho ga or dua ha k apka next trading week bhi acha jy.
dear members trading itni asaan ha ni jtna hum esko smjhty hain or esi waja se hamen loss hota ha agr hm market ko smjh kr trade karen to hmary successful hony k chances zada hn.
market main 2 chezen important hain aik to price action jo k market ki apni movement hoti ha jb k 2nd indicators hoty hain jo k trading main help karty hain.
aj hum aik important indicator ko es post main study karen gy jo k Average True Range indicator khlata ha.

What is Average True Range?

Dear members average true range aik technical indicator ha jo k market main volatility ko measure karta ha.
ye indicator trading pair ki prices ko time periods main decompose kr k volatility btata ha.
Basically ye aik moving average hoti ha jo k 14 periods ki true range ko use karti ha es lye esko averaeg true range kaha jata ha.








How to use average true range?


Dear members average true range hamen market main srf volatility k bary main btata ha ye market k trend ya direction k bary main kch n btata.
esko tradinh main vlatility find karny k lye use kia ja skta ha jesa k es k 2 levels hoty hain nechy ki trf 0-20 ka level ha jb k opr ki trf 80-100 ka level ha.
agr ATR in dono main se ksi level ko touch karta ha to ye hamen indicate krta ha. Jesa k 0-20 ka levwl low vlatility ka level ha or es main trade na ki jy.
jb k 80-100 ka level high volatility ka level ha or es main trades leny ka kaha jata ha.






or beech main 50 ka level hota ha agr ATR 50 se above ho to ye normal volatility ko indicate karta ha jb k 50 se nechy low volatility hoti ha.


Limitations of ATR?


Dear members jesa k ye indicator srf volatility measure karta ha or market k trend or direction k bary main koe information n deta to baz oqat ho skta ha market ka trend reverse hony wala ho or market main volatility aa jy jb k user ye smjh skta ha k old trend main volatility ai ha or wo accordingly trade kar skta ha to usy loss ho ga.

Re: what is ATR average true range indicator:

WHAT IS AVERAGE TRUE RANGE (ATR) INDICATOR :





Average true range (ATR) ak technical indecator hota ha is indecator ko introduced kiya tha J. Welles Wilder na jis ka bara ma unho na apni book ma lekha tha. Ya average true range indicator sa hum measured karta ha market ke volatility ka bara ma. Ya true range indicator follow karta ha current high less the current ka low ka bara ma; jo absolute value hote ha current high ke wo less hote ha previous close ka; or jo absolute value hote ha current low ke wo bhi less hote ha previous close ka. ATR moving average ko nikala jata ha 14 days ka true range sa.






IMPORTANT POINTS FOR AVERAGE TRUE RANGE :



1:

Average true range ko technical analysis kar ka market ke volatility ka bara ma jana jata ha.

2:

Average true range indicator ko last 14 days ke simple moving average sa nikala jata ha.

3:

Is Average true range indicator ko banaya gaya tha market ko samajna ka liya par is pattern ko apply kiya ja sakta ha all types of market securities ma.





THE AVERAGE TRUE RANGE (ATR) FORMULA :






Agar ap na calculate karna ha average true range ko to jo sab sa phala step ho ga ATR ko wo ya ho ga ka true range ke value ko find karna ho ga.


TR=Max[(H − L),Abs(H − CP),Abs(L − C P)]

ATR=( n1 ) (i=1)
∑TR i


where:


TR i =A particular true range

n=The time period employed






HOW TO CALCULATE AVERAGE TRUE RANGE (ATR) :






Traders average true range ko find karna ka liya shorter period ko use karta ha ji ka 14 days sa kam hota ha or trading signal ko genrate karta ha, or agar hum 14 days sa zada timr period sa average true range ko calculate kara ga to huma jo trading signal mila ga wo zada accurate ho ga yani ya signal sai sa kam kara ga. Traders average true range ko calculate karta ha five days ma jes sa wi sirf volatility ko find karta ha.






WHAT DOES THE AVERAGE TRUE RANGE (ATR) TELL YOU :





Wilder na developed kiya tha is average true range ko jes ko use kar ka hum indecate karta ha stocks or indices ko. Jab stocks ka high level hota ha to osma volatility ke high average true range value hote ha,or jab low ho ga volatility of stock ho ga to low ho ge average true range. Traders ATR ko use kar ka market ma trade ke enter kr exit point ko find karta ha. Ya pattern huma price direction ka bara ma ni batat.