ilmscore | How To Use The Average True Range For Beginners (MUST KNOW SECRETS)

Predictions from this Video

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Prediction
Topic
Status
For breakout strategies, a breakout candle should be at least 1x the ATR value to indicate sufficient momentum for the breakout to continue.
"I like to see momentum on my breakouts an objective way to qualify momentum is to use the atr indicator if we are above 16 pips which is what the atr is right now or above one times atr then that tells me that we have momentum"
Trading Strategy - Breakout Confirmation
Pending
A momentum candle in trading should be at least equal to or greater than the current ATR value (e.g., a candle over 26 pips when ATR is 26 pips).
"I need to see a candle that's bigger than one atr if I'm hovering over this candle looking your top left I'll put an arrow towards it right now we're at 0.26 meaning we have a 26 pip atr so if we have a 26 pip atr on that candle then I want to check to see is that candle more than 26 pips from low to high"
Trading Strategy - Momentum Candle Qualification
Pending
When RSI shows divergence (price making lower lows, RSI making higher lows), wait for a momentum candle (at least 1x ATR) before entering a trade.
"I would not want to buy this until I see a momentum candle this is a way you could use a rule using the atr indicator and how would I qualify that momentum well I need to see a candle that's bigger than one atr"
Trading Strategy - Entry Signal with RSI Divergence and Momentum
Pending
To set a dynamic stop loss, add the ATR value to the distance from the entry point to the nearest swing low (e.g., 16 pip ATR + 18 pips to swing low = 34 pips for the stop loss).
"I would add 16 to 18 which is what 34. so what I would do is pull my position tool down to 34 or take my ruler tool out add those two together if you would if you just have a ruler get a ruler tool here we have 17 18 pips plus our 16 pip atr means 34 go down to 34 put a horizontal line at 34."
Trading Strategy - Dynamic Stop Loss Placement
Pending
Using ATR for stop-loss placement helps prevent being stopped out by short-lived price spikes (whipsaws).
"The main way I like to use the atr indicator is for my stop-loss placement to keep me from getting wicked out of trades if we have a market that pushes down with a wick I'm now safe for that market pushing back up immediately afterwards"
Trading Strategy - Stop Loss Placement to Avoid Whipsaws
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