How To Use The Average True Range Indicator ?

What is ATR? The well known by its acronym in English or legitimate range half Spanish, helps the operator to have a more clear and comprehensive which is the current market volatility, this indicator was released almost 32 years ago by Welles Wilder, the original creator, who had the idea of development as well as other indicators for the convenience and ease of operators in the foreign exchange market, so they can see the unstable stock market consolidated and securities at the end of the day. So much easier, Average True Range indicator may show what is the strength or weakness of a bow and lets the average daily value points of a given pair. It should not be taken as an indicator or signal generator to buy or sell at a particular time in the Forex market. Moreover, this indicator although there may be a bit of a contradiction, if used in conjunction with strategies, which can show the best time to enter or exit the market. ATR does not measure changes in the orientation or changes in direction, or duration of volatility. On the other hand, the ATR indicator is used as a principle for other more complex indicators, such as the RWI (Randon Walking Index), among others. How to use the ATR indicator? The creator of this indicator uses 3 ways to get your value as follows: The absolute value of a distinction between the largest amount and the last closing price. The absolute amount subtracted from smaller amount of day and the amount of the last closing The subtraction between the largest number occurring in that time and the smaller number that also appears in this period.