information about Average true range indicator :
Asslam O Alikum:
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.
Zada tr traders es indicators ko trade exit karny k lye use karty hain q k jb low volatility ho market main to price bht ahsta se move karti hain tb traders exit ho jaty hain.
Ye indicator position sizing main bhi help karta k kitny size ki position se kb entry li jy.
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.
Limitation of ATR:
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.
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.
Zada tr traders es indicators ko trade exit karny k lye use karty hain q k jb low volatility ho market main to price bht ahsta se move karti hain tb traders exit ho jaty hain.
Ye indicator position sizing main bhi help karta k kitny size ki position se kb entry li jy.
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.
Limitation of ATR:
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.