Many of you know that I do not use too many indicators in my trading. I prefer to trade directly off of price action because they do not lag like most indicators.
However, there is one indicator that I use on a very frequent basis called the Average True Range (ATR) which is commonly seen at the bottom of my price charts in most of my videos.
A couple of fellow traders name, AnthionX and LiveLearn, on Trading View was curious how I use ATR in my Bitcoin trading. I made this video to address their inquiry.
I will discuss:
- what is the Average True Range (ATR).
- What is the difference between ADR versus ATR?
I will also discuss how to use Bitcoin’s ATR to:
- Measure Bitcoin’s volatility.
- Set stop losses correctly while trading Bitcoin so you do not get shaken out.
- Measure time and distance when projecting the price of Bitcoin into the future.
Lastly, I will discuss what is the ideal ATR setting depending upon your particular trading style.
Click Currency Analysis for a list of all the episodes in this series or click the link below to watch the next episode:
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