atr average true range indicator

Assalam alaikum 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.

What are 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: ATR average true range indicator

Yes dear, Average True Range aisa indicator hay jo market ki volatility mearsure karny kay liay 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 ziada commodities main volatility hoti hai.

Features of Average true Range Indicator:




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 surat 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, stock kay liay bhi use kia jata hay,

Calculation procedure of ATR:




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.