Currency Analysis #8 – How to Estimate Bitcoin’s Price Velocity Using Average True Range (ATR)

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:

Currency Analysis #9 – How To Identify Bitcoin Market Manipulation & Insider Trading

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