Stock Portfolio Organizer

The ultimate porfolio management solution.

Shares, Margin, CFD's, Futures and Forex
EOD and Realtime
Dividends and Trust Distributions
And Much More ....
For Portfolio Manager Click Here

WiseTrader Toolbox

#1 Selling Amibroker Plugin featuring:

Advanced Adaptive Indicators
Advanced Pattern Exploration
Neural Networks
And Much More ....
Find Out More Here

ATR Bands by Gordon Gustafson for Metastock
matz
over 10 years ago
Metastock

Rating:
0 / 5 (Votes 0)
Tags:
metastock, stop loss, atr

Average true range (ATR) is a technical analysis volatility indicator originally developed by J. Welles Wilder, Jr. for commodities. The indicator does not provide an indication of price trend, simply the degree of price volatility. The average true range is an N-day smoothed moving average (SMMA) of the true range values. Wilder recommended a 14-period smoothing. Source Wikipedia

When using the ATR indicator as a trailing stop loss there is a problem. In an uptrend the stop moves downwards as the ATR widens instead of upwards with the trend. Average True Range Bands try to address this weakness. Stops only move in the direction of the trend and do not assume that the trend has reversed when price crosses the stop level. ATR Bands should be used as follows:

  • If in a long position exit when the price crosses below the lower Average True Range Band.
  • If in a short position exit when the price crosses above the upper Average True Range Band.

Screenshots

Files

Indicator / Formula

Copy & Paste Friendly
stdha := Mov(C,20,E)+2*(ATR(20));
stdla := Mov(C,20,E)-2*(ATR(20));
stdha;
stdla

0 comments

Leave Comment

Please login here to leave a comment.

Back