Indicators of trading: Relative ATR

Relative ATR

The ATR is a great tool. However, it cannot be used as a volatility indicator. It is bound within 0 – 100% and compared to the previous X days so a comparison can be made.

  • For No Nonsense Forex followers, this has been created in an attempt to incorporate the $EVZ chart into MT4. e.g. When the ATR(14) is at the bottom 25% compared to the past 800 days, instead of taking half profit off at the 1xATR mark, take the full profit off, as recommended by VP in the ‘Dead Markets’ episode.
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