Download Now
The ATR Bands indicator is a volatility-based indicator that incorporates the Average True Range (ATR) to measure the significance of it in the market.
This technical indicator would be handy as a volatility detector- it would tell you when there is high/low volatility. It would also be good for trend analysis and searching for reversal points.
Though the indicator looks somewhat like typical Bollinger Bands, it uses a different function. The bands represent the higher and lower range of the price and are calculated with averages. Therefore,
Candles with ATR bands are much better for trading than candlesticks with a Bollinger Band because they combine volatility analysis with trade entry and exit points. This is better than just backtesting to find fairs points
Furthermore, traders of all levels are able to use the indicator. More than that, it’s a useful instrument for novice, intermediate and advanced traders. This indicator can be used for different trading styles such as scalping day/intraday trades and swing trading
BUY Signal: Firstly, wait for the price to swing down to the lower band of the indicator, then watch out for a price rejection upwards. With this condition, you may open a BUY/SELL position after another bullish reversal candlestick pattern (e.g. bullish engulfing).
SELL Signal: First, wait for the price to reach the upper band of the indicator. Afterwards, watch out for a price rejection down. Once this happens, you can open a SELL/SHORT position if price action prints a bearish reversal candlestick pattern in the meantime. (e.g. bearish engulfing).
Conclusion
The ATR bands indicator is used to identify trends and volatility in the markets. It’s well worth using as you can use it to identify trend reversals, volatility, breakouts and more. The indicator is accessible to everyone and can be downloaded for free.
Download Now
The post ATR Bands Indicator first appeared on EzyForexTrading - Download Metatrader Indicators and Learn trading!.
from
https://ezyforextrading.com/atr-bands-indicator/?utm_source=rss&utm_medium=rss&utm_campaign=atr-bands-indicator
No comments:
Post a Comment