Average true range indicator

Average true range indicator
What is average true indicator

( ae tea are )? ost haqeeqi had ( atr ) aik takneeki tajzia ka ishara hai jisay market tiknishn j. welles wilder jr. ne apni kitaab new concepts in technical trading systems mein muta-arif karaya hai jo is muddat ke liye asasa ki qeemat ki poori range ko Gul kar market ke utaar charhao ki pemaiesh karta hai. 1 sahih range ke isharay ko darj zail mein se sab se bara samjha jata hai : current high kam mojooda kam mojooda aala ki mutlaq qader pichlle band se kam aur mojooda kam ki mutlaq qader pichlle band se kam hai. atr phir aik mutharrak ost hai, aam tor par haqeeqi hudood mein se 14 din istemaal karta hai. traders 14 dinon se kam doraniye ko mazeed trading signal jinreet karne ke liye istemaal kar satke hain, jab ke lambay arsay mein kam trading signals peda karne ka ziyada imkaan hota hai. ahem take ways ost sahih range ( atr ) takneeki tajzia mein istemaal honay wali market mein utaar charhao ka ishara hai. yeh aam tor par haqeeqi had ke asharion ki aik series ki 14 din ki saada moving average se akhaz kya jata hai .



How to calculate the ATR

ae tea are ka hisaab laganay ka pehla qadam security ke liye sahih range ki qadron ka aik silsila talaash karna hai. diye gaye tijarti din ke liye kisi asasa ki qeemat ki had is ki ziyada minus is ki kam hai. kisi asasa ki haqeeqi had ki qader talaash karne ke liye, aap pehlay formulay se teen eslehaath ka taayun karte hain. farz karen ke xyz ke stak ki aaj trading oonchai $ 21. 95 aur kam $ 20. 22 thi. kal $ 21. 51 par band sun-hwa. teen eslehaath ka istemaal karte hue, hum sab se ziyada nateeja istemaal karte hain : ( each - ail ) = $ 2 1. 9 5 - $ 2 0. 2 2 = $ 1. 7 3 ( h−l ) = $ 21. 95− $ 20. 22 = $ 1. 73? ( each - si )? =? $ 2 1. 9 5 - $ 2 1. 5 1? = $ 0. 4 4? ( h−c s mein )? =? $ 21. 95− $ 21. 51∣ = $ 0. 44? ( ail - si )? =? $ 2 0. 2 2 - $ 2 1. 5 1? = $ 1. 2 9? ( l−c s mein )? =? $ 20. 22− $ 21. 51∣ = $ 1. 29 aap jo number istemaal karen ge woh $ 1. 73 hoga kyunkay yeh sab se ziyada qeemat hai. chunkay aap ke paas pichla atr nahi hai, aap ko atr farmolh istemaal karne ki zaroorat hai : ( 1 )? tea ar


Example of how to use the ART
ae chaye hain ab ka lagane ka pehla qadam karna hai to security ke liye sahih had ki qadron ka aik silsila talaash karna. diye gaye tijarti din ke liye kisi aasa ki qemat ki Ziyaad ki Ziyaad ki kaam hai. kisi bhi shakhs ki khoobi maloom karne ke liye, aap pehlay se behtar ka تائیون karte hain. xyz stock ki aaj ki tijarti qeemat $ 21. 95 aur $ 20. 22 thi. kal $ 21. 51 par band sun-hwa. agar hum sirf aadha ghanta istemaal karte hain to hum sab se ziyada istemaal karte hain : ( har aik - ail ) = $ 2 1. 9 5 - $ 2 0. 2 2 = $ 1. 7 3 ( h−l ) = $ 21. 95− $ 20. 22 = $ 1. 73? ( har aik - si ) ?, $ 2 1. 95 - $ 2 1. 5 1? = $ 0. 4 4? ( h−c s mein ) ?, $ 21. 95− $ 21. 51∣ = $ 0. 44? ( ail-si ) ?, $ 2 0. 2 2 - $ 2 1. 5 1? = $ 1. 29? ( l−c s mein ) ?, $ 20. 22− $ 21. 51∣ = $ 1. 29 aap jo bhi number istemaal karen ge, aap ko $ 1. 73 miley ga kyunkay yeh is se ziyada hai. chinky aap ke paas پچلا utar nahi hai, aap ko itna farmolh astmal karne ki zaroorat hai : ( 1 )? chaye hain

Re: Average true range indicator

Average True indicator

Dear member average true range (ATR) aek asharay hay jo market kay atar chrrhao ke pemaesh krta hay. asay technique tajzeh men astamal kea jata hay aor yh zahr krta hay kh aek mqrrh waqt kay doran kse asash ke qemt aostan ktne brrh jate hay.



Importance of average true

(1) average hqeqe hd (ATR) market kay atar chrrhao ke pemaesh krte hay aor aek mqrrh mdt men asash ktna hrkt krta hay.
(2)aay te aar kay leay astamal honay wale mdt aksr 14 dn hote hay halan keh as say km mudt bhe astamal ke ja skte hay.
(4) asharay dn kay tajron ko as bat ke tsdeq krnay men mdd kr skta hay kh woh kb tjart shroa krna chahtay hen aor as ka astamal stop loss aardr ke jgh ka taen krnay kay leay kea ja skta hay.

Working of ATR

Dear member ATR indicator aopr aor nechay ke trf brrhta hay jb kse asasay men qemt brrh jate hay ya chhote hote hay. hr waqt gzrnay kay sath aek nee ATR reading ka hisab lgaea jata hay. aek mint kay chart pr hr mint men aek nee ATR reading ka hsab lgaea jata hay. rozanh chart pr hr roz aek nea ATR shmar kea jata hay. yh tmam readings aek mslsl laen bnanay kay leay aek graf pr bnaee ge'e hen takh tajr yh dekh sken kh wqt kay sath ks trh atar chrrhao bdla hay.
aaj kay leay ATR ka hsab lganay kay leay aap ko phlay True range (TRs) ke aek sereies ka hsab lgana chaheay. aaj kay leay TR drj zel kay ntejay men sb say brre tadad hoge.



ATR for day trading

Dear member agr aap intra day chart pr aay te aar astamal kr rhay hen jesay kh aek ya panch mnt ka chart to market khlnay kay foran bad aay te aar zeadh brrh jaeay ga. stock kay leay jb brre american sbh 9:30 bjay mshrqe khlte hen to ATR phlay mnt men aopr chla jata hay. as ke wajh yh hay kh khla dn ka sb say zeadh atar chrrhao wala waqt hota hay aor ATR srf yh btata hay kh atar chrrhao as say zeadh hay jo kl kay qreb tha. khlay waqt men azafay kay bad ATR aam tor pr dn kay beshtr hsay men grta hay. ATR asharay men dn bhr kay doghlay zeadh malomat frahm nhen krtay hen soaeay as kay kh aostan hr mnt men qemt ktne brrh rhe hay. ase trh woh rozanah ATR ko yh dekhnay kay leay astamal krtay hen kh aek asaseh aek dn men kitna hrkt krta hay dn kay tajr aek mnt ka ATR astamal kr kay andazah laga sktay hen kh panch ya 10 mint men qemt kitne brrh skte hay. yh hkmt amle mnafa kay ahdaf ya stop loss aardr qaem krnay men mdd kr skte hay.

Using ATR for trailing stop loss

Dear member tjart agr asaseh ke qemt aap kay khlaf chlte hay lekin agr qemt aap kay hq men chl rhe hay to aap ko exit point ko mntql krnay kay qabl bhe bnata hay. kee dn kay tajr yh malom krnay kay leay aay te aar ka astamal krtay hen kh an ka trelng astap las khan rkhna hay
tjart kay waqt mojodh ATR reading ko dekhen. angothay ka asol yh hay kh ATR ko do say zrb day kr aek maqol stop loss point ka taen kea jaeay. lhza agr aap stock khred rhay hen، to aap dakhlh qemt say nechay ATR say do gna sth pr astap las lga sktay hen۔ agr aap astak ko km kr rhay hen to aap dakhlh qemt say zeadh ATR say do gna zeadh sth pr stop loss lgaen gay.
agr aap toel arsay say tjart krtay hen aor qemt sazgar hote hay to stop loss ko qemt say nechay ATR say dogna tk lay jana jare rkhen. as mnzr namay men stop los srf aopr jata hay nechay nhen. aek bar jb asay aopr lay jaea jata hay to yh wahen rhta hay jb tk kh asay dobarh aopr nhen lay jaea ja skta ya qemt grnay kay ntejay men tjart bnd ho jate hay takh stop los level tk phnch jaeay. yhe aml shart trades kay leay bhe kam krta hay srf as sort men stop loss srf nechay jata hay.
msal kay tor pr frz kren kh aap $10 pr aek lmbe tjart krtay hen aor ATR 10 sent hay. aap $9.80 ($10 say km 2 10 sent) pr aek stop loss den gay. qemt $10.20 tk brrh jate hay aor ATR 10 sent pr rhta hay. trailing stop loss ab $10 tk brrh gea hay. jb qemt $10.50 tk brrh jate hay to stop loss $10.30 tk brrh jata hay jo tjart pr km az km 30 sent mnafa ko rokta hay. yh as waqt tk jare rhay ga jb tk qemt gr kr stop los point tk nhen phnch jate.

Average True Range (ATR) trading mein aik bohat hi aham aur widely used indicator hai jo market ki volatility ko measure karta hai. ATR ko traders istimaal karte hain taake yeh samajh sakein ke kisi asset ya security mein price kitni rapidly aur range ke hisaab se move kar rahi hai. ATR price direction ko predict nahi karta, balki yeh sirf price movement ki intensity ya volatility ko measure karta hai. ATR indicator ko 1978 mein J. Welles Wilder ne apni kitab New Concepts in Technical Trading Systems mein introduce kiya tha. Yeh indicator specially commodities ki market ke liye develop kiya gaya tha, lekin aaj yeh stocks, forex, aur cryptos jese instruments mein bhi widely use hota hai. ATR ka maqsad yeh hai ke price ki volatility ko measure kiya jaye, taake traders ko yeh samajh aaye ke price movement kitna strong ya weak hai.



Average True Range ka main focus yeh hota hai ke price ek specific time period ke dauran kitna move kar raha hai. Is movement ko range ke zariye measure kiya jata hai, jo lowest aur highest price ke difference ko indicate karta hai. ATR jitna zyada hoga, market mein volatility utni hi zyada hogi, aur ATR jitna kam hoga, market utni hi kam volatile hogi.

True Range Kya Hai
True Range (TR) ATR indicator ka ek aham hissa hai. ATR ko calculate karne ke liye pehle true range ko samajhna zaroori hai. True Range ka calculation kuch specific principles par based hota hai, jisme lowest aur highest price ko compare karna hota hai.

ATR Indicator Ka Calculation
ATR ko calculate karne ka tareeqa simple hai, lekin yeh true range ke concept par base karta hai. True range ko calculate karne ke baad, uska aik average liya jata hai. ATR ko typically 14 periods ka average liya jata hai, lekin aap is period ko apni zarurat ke mutabiq adjust kar sakte hain. Jitna lamba time period hoga, ATR utni hi smooth hogi aur jitna chhota time period hoga, ATR utni hi reactive hogi.

• Previous ATR pichlay period ka ATR hai.
• Current TR ka matlab current period ka true range hai.
• n number of periods ko represent karta hai (typically 14).

Is formula ke zariye ATR time ke sath calculate hoti hai aur is kaafi accurate estimation provide karti hai ke market mein volatility kis had tak hai.

ATR Indicator Ka Kaise Analysis Karte Hain
ATR ka sab se basic istimaal yeh hota hai ke traders market ki volatility ko samajh sakein. ATR high ka matlab hota hai ke market mein zyada price movement hai, jab ke ATR low ka matlab yeh hota hai ke market mein kam price movement hai. ATR ke kuch important aspects ko samajhna zaroori hai:

1. High ATR
Jab ATR indicator high readings dikhata hai to iska matlab yeh hota hai ke market mein bohat zyada volatility hai. Yeh high volatility aksar news events, market ke sentiment change hone ya kisi unexpected economic report ki wajah se hoti hai. High ATR ka matlab yeh hota hai ke market ka trend fast aur aggressive hoga.

2. Low ATR
Low ATR reading ka matlab hota hai ke market quiet ya steady hai aur usmein koi major move nahi ho raha. Iska matlab yeh ho sakta hai ke market range-bound hai ya kisi major breakout ka intezaar kar raha hai. Low ATR ko aksar market calm periods ke tor par dekha jata hai, jab log apne trades ko hold kar rahe hote hain.

3. ATR Reversals
Kabhi kabar ATR indicator se reversals ka bhi andaza lagaya ja sakta hai. Agar ek period mein ATR consistently high readings dikha raha ho aur achanak se downtrend shuru ho jaye, to yeh baat ishaara karti hai ke market apni momentum lose kar raha hai aur ab calm hone laga hai. Is halat mein trend reversal ka imkaan hota hai.

4. ATR Range Breakouts
Jab ATR bohat zyada low levels par hota hai, to yeh baat signal karti hai ke market ek breakout ki taraf ja raha hai. Low ATR readings aksar market ke squeeze periods ko dikhati hain jahan price ek narrow range mein hoti hai. Jab yeh squeeze break hota hai, to ATR readings sharp upward move karti hain, jo ke market breakout ka signal hota hai.

ATR Indicator Ka Kaise Use Karte Hain
ATR indicator ka main focus market volatility ko measure karna hota hai, lekin iska direct signal entry aur exit points dhoondhne ke liye nahi hota. Is indicator ko aksar trading strategies ke sath combine karte hain taake volatility ka faida uthaya ja sake. ATR ke kuch main istimaal ke tareeqay yeh hain:

1. Stop Loss Setting
ATR ko bohot si strategies mein stop loss ke placement ke liye use kiya jata hai. Kyun ke ATR market ki volatility ko measure karta hai, isliye aap ATR ki madad se stop loss ko adjust kar sakte hain. Aam tor par traders stop loss ko current price se kuch times ATR distance par rakhte hain.

For example, agar ATR 20 points ka ho aur aap stop loss ko wide rakhna chahte hain, to aap current price se 1.5x ya 2x ATR ka distance nikal kar apna stop loss set kar sakte hain. Is tarah aapko apni risk management ke mutabiq stop loss set karne ka mauqa milta hai.

2. Position Sizing
Position sizing ke liye bhi ATR bohot useful hota hai. Jitni market volatile hogi, utni aapki position chhoti honi chahiye, aur agar market calm hai to aap badi position le sakte hain. ATR ke basis par aap volatility ke mutabiq apne position size ko adjust kar sakte hain.

For example, agar ATR low hai to iska matlab hai ke price ka movement restricted hoga, to aap apni position ko slightly increase kar sakte hain. Lekin agar ATR high hai to price ki volatility zyada hogi, is liye position size ko chhota rakhna safe hota hai.

3. Trailing Stop Loss
ATR ko trailing stop loss ke liye bhi use kiya ja sakta hai. Trailing stop loss ka matlab hota hai ke jab market aapke favor mein move karti hai, to aap apne stop loss ko adjust karte jate hain taake apne profits ko lock kar sakein. ATR ki madad se aap dynamically stop loss ko adjust kar sakte hain.

For example, agar market aapke favor mein move kar rahi hai aur ATR readings high hain, to aap apna stop loss price se kuch times ATR distance par set karte hue move karte rahenge.

4. Volatility-Based Strategies
ATR ko volatility-based strategies mein directly istimaal kiya jata hai. Jab ATR readings high hoti hain to iska matlab hota hai ke market aggressively move kar rahi hai aur aapko yeh signal milta hai ke aap trend-following strategies ko adopt kar sakte hain. Is waqt breakout trades lena faidemand ho sakta hai.

Isi tarah, agar ATR readings low hain to iska matlab hota hai ke market calm hai aur aapko rang-bound strategies ko adopt karna chahiye jisme support aur resistance levels ke beech trading ki ja sakti hai.

ATR Ka Fayda
ATR indicator ke kaafi advantages hain jo traders ko zyada effective aur informed decisions lene mein madad dete hain:

1. Market Volatility Ka Andaza
ATR aapko market ki overall volatility ka accurate andaza lagane mein madad deta hai. Is se aap samajh sakte hain ke kisi specific asset ya security mein kitni fast movement ho rahi hai, aur is ke hisaab se apni trading strategy ko adjust kar sakte hain.

2. Risk Management
ATR ke zariye aap better risk management kar sakte hain. Iski madad se stop loss aur position sizing ko adjust karna asaan ho jata hai. Aap volatility ke mutabiq apne trades ko effectively manage kar sakte hain taake aap unexpected price movements se bach sakein.

3. Trend Confirmation
ATR aapko trend continuation ya reversal ka bhi signal de sakta hai. Jab ATR readings increase karti hain, to iska matlab hota hai ke trend momentum high hai aur market mein strong move ka imkaan hai. Isi tarah, low ATR readings se market calm hone ka signal milta hai.



ATR Indicator Ke Limitations
Har indicator ki tarah, ATR ke bhi kuch limitations hain jo traders ko samajhna zaroori hota hai:

1. Direction Ka Signal Nahi Deta: ATR price direction ka signal nahi deta. Yeh sirf market ki volatility ko measure karta hai. Aapko ATR ke sath dusre indicators ya price action ka analysis karna zaroori hota hai taake price direction ka andaza lagaya ja sake.
2. Choppy Markets Mein Misleading Ho Sakta Hai: Choppy markets mein ATR misleading ho sakta hai kyun ke price rapidly move hota hai lekin koi clear trend ya direction nahi hoti.
3. Lagging Indicator: ATR aik lagging indicator hai, yani yeh past data ko use karta hai. Isliye yeh future price movements ko accurately predict nahi kar sakta, sirf market volatility ka estimate de sakta hai.

Average True Range (ATR) aik powerful aur flexible indicator hai jo market volatility ko measure karta hai. Iski madad se traders ko market ke risk aur reward ka andaza lagane mein madad milti hai. ATR ka sab se bada fayda yeh hai ke yeh volatility ko clear tareeqe se samjhata hai, lekin iske sath hamesha dusre indicators aur strategies ka istimaal karna zaroori hota hai. ATR ko stop loss placement, position sizing, aur risk management ke liye bhi use kiya ja sakta hai. Is indicator ka istimaal karke aap trading mein zyada informed decisions le sakte hain aur volatile market conditions mein safe aur profitable trades execute kar sakte hain.