Cryptocurrency Q&A
What is the ATR in futures?
What is the ATR in futures?
GalaxyWhisper
Tue Jul 02 2024
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7 answers
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Could you elaborate on the significance and usage of ATR, or Average True Range, in the context of futures trading? I'm particularly interested in understanding how it helps traders gauge volatility and potentially predict future price movements. How is it calculated? And how do traders typically utilize this indicator to make informed trading decisions? Is there a specific strategy or approach that tends to be more effective with ATR in futures markets? Your insights would be greatly appreciated.
7 answers
GeishaMelodious
Wed Jul 03 2024
Commonly, the ATR is computed using 14 periods as the base, though this can vary depending on the trader's preference or strategy.
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SsamziegangSerenade
Wed Jul 03 2024
The periods used in ATR calculations can range from intraday intervals to daily, weekly, or even monthly data.
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SakuraBloom
Wed Jul 03 2024
The Average True Range (ATR) serves as a metric to gauge market volatility over a designated time span.
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Valentina
Wed Jul 03 2024
For instance, a 14-day ATR would consider the true ranges of the past 14 trading days to arrive at an average.
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Daniele
Wed Jul 03 2024
The ATR represents the average of true ranges observed during the specified period, capturing the extent of price fluctuations.
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