Average true range indicator;

Assalam alaikum!dear members umeed ha ap sb khairiat se hn gy ir apka trading week acha ja raha ho ga.
aj ki es post main hum Average True range indicator ko study karen gy k eska working mechanism kia ha or es se hamen trading main kesy help mil skti ha.

What is average true range??

Dear members average true range ATR aik technical indicator ha jo oscillator family se ha or market main volatility ko measure krta ha by decomposing the prices for that period.
True range infact 1 moving average hoti ha jo k 14 days ki hoti ha ap esy apni marzi se change bhi kar skty hain.
Volatility es situation ko khty hain jb matket main kafi zada trading volume ho or prices teezi se tabdeel ho rhi hn.Yhi time trading k lye best b hota ha risky bhi agr ap achi entry lety hain to volatile market main apko acha profit mil skta ha or Average True range indicator esi chz main apki help karta ha ye apko btata ha k kis time market main volatility ha taa k ap achi entry le skn.



Dear members average true range ATR aik technical indicator ha jo oscillator family se ha or market main volatility ko measure krta ha by decomposing the prices for that period.
True range infact 1 moving average hoti ha jo k 14 days ki hoti ha ap esy apni marzi se change bhi kar skty hain.
Volatility es situation ko khty hain jb matket main kafi zada trading volume ho or prices teezi se tabdeel ho rhi hn.Yhi time trading k lye best b hota ha risky bhi agr ap achi entry lety hain to volatile market main apko acha profit mil skta ha or Average True range indicator esi chz main apki help karta ha ye apko btata ha k kis time market main volatility ha taa k ap achi entry le skn.

How to use average true range indicator??


Dear members ATR closing prices py apply hota ha or ye hamen exact signal ni deta sell ya buy ka laikin ye ohr bhi hamen trading main help karta ha.
Agr price ATR ki closing se opr trade karti ha to hum yahan se buy position le skty hain jb aisa hota ha ti eska mtlb hota ha k volatility change ho chuki ha or ah prices opr ki trf move karen ge es lye hum long position lety hain.




Limitations of average true range indicator??


the first and main limitation of ATR, wo ye ha k ye indicator hamen sirf or sirf volatility k bary main btata ha ye market k trend or direction k bary main ni btata.
es lye es k sth sth hamen koe trend indicator b use karna chahye taa k hm esko sth main use kr k confirmation k bad trade len or hmari trades profitable hn.
2ndly ye hamen es bary main bhi ni btata k kb trend reverse hona ha or kb tk koe trend continue rhna ha.

Re: Average true range indicator;

Assalamu Alaikum Dosto!

Average True Range (ATR) Indicator

Average True Range (ATR) aik simple lekin bohat maqbool indicator hai, jisay market ke volitilety yani utaar charhao ki nishan-dahi karne ke liye design kya gaya hai. ATR indicator ko J. Welles Wilder ne1978 apni book 'New concepts in technical trading systems' mein iss ki tafseel bayan ki hai. Ziyada tar dosre indicators k bar-aks, yeh indicator traders ko entry points faraham nahi kerta hai. ATR ko market k volitilety yanni utaar charhao k liye design kya gaya hai. Traders k leye trading k dowran volitilety ki level ko janna shayad sab se ziyada mufeed hai, aur jab baat aap ke take profit aur stop loss ka taayun karne ki ho to iss ki ahmeyat aur bhi barh jati hai. Take profit aur stop loss ki salahiyat ne ATR indicator ko traders ke liye maqbool tareen tools mein se aik bana diya hai.

ATR Calculation

J. Welles Wilder ne ATR indicator ki calculation ki apne aik khas technique design ki hai, jiss main unhon ne do line True Range (TR) aur Average True Range (ATR) ki pehle calculation karni hai. True Range ki calculation darjazel tarah se hoti hai;

1. High - Low
2. High - Previous Close
3. Low - Previous Close

True ki calculation k baad Average True Range (ATR) number ko malom karna hai, jiss k leye darjazel formule ka istemal kia jata hai ;

Current ATR = [(Prior ATR x 13) + Current TR] / 14

1. Multiply the previous 14-day ATR by 13.
2. Add the most recent day's TR value.
3. Divide the total by 14

Explanation

ATR indicator is baray mein maloomat ko zahir karta hai ke market kitni volitile ka shikaar hai, jis mein average se oopar ki value high volitile ki nishan-dahi karti hain aur average se low value kam volitilety ki nishan-dahi karti hain. Yeh khaas tor par market ki movement ke aaghaz mein bohut achah bartao karta hai.
Aam tor par trader ATR indicator ka istemaal is bunyaad par karta hai, k market mein volitilety kaisay increase hoti hai. Dosre instruments par ATR jitna ziyada hoga, stop loss aur take profit itnay hi wasee hon gey, jo istemaal main laye ja saktay hen. Iss k bar-aks, agar ATR ki value low hai, to stop loss aur take profit ko kam kya ja sakta hai taakay woh is waqat ki market ki halat mein ziyada durust tareeqay se fit ho jayen. Trader apni trading tarjeehat ki bunyaad par short ya long timeframe istemaal kar satke hai.
Aap aasani se ATR indicator ko apne skilling trading plateform mein shaamil kar satke hain. Aap ko sirf indicator ke drop down manu mein ATR type karne ki zaroorat hai. Yahan ap ko mukhtalif colors k sath sath input data (misaal ke tor par small ya long timeframe) bhi tabdeel kar satke hain. ATR indicator price chart ke neechay aik izafi window mein open jaye ga.

Canclusion

Average True Range (ATR) indicator aik bohat hi unique indicator hai aur jiss ki waja se ye bohut ziada mashahoor hai. Wese to ye indicator trading k leye entry point faraham nahi karta hai, lekin ye unn points ki nishan-dahi karta hai, jiss ko aam tawar par trading k dowran ziada tawajah nahi de jati hai. Market ki volitilety ko janna intehai zaroori hai. Q k is ke baad aap na sirf yeh faisla kar satke hain ke aya ye makhsoos market aap ke trading techniques ke liye mozoon hai, aur jab aap trading ke sath agay bherne ka faisla karte hain, to yeh indicator aap k take profit aur stop loss mein bhi aap ki madad kar sakta hai. Yeh indicator aik achay risk managment ka bara hissa hai. lehaza, hum yakeeni tor par ATR indicator ka mutalea karne aur usay apne analysis mein istemaal karna zarori tawar par shamil karna chaheye.