Use ATR (To Set Stop Losses & Targets) for OANDA:EURUSD by Anbat

ATR ( average true range ) is I think the best indicator(period)- related to setting your stop losses and targets. This ATR indicator should be part of your plan, trading edge and strategy to utilize on every trade you do.

This is 1st article of four articles related to this subject:

Note: Will be doing three more articles on using ATR on lower time frames: 4 hour, 1 hour and 15 minute in the future.

Using ATR On Daily Chart (see example here)

On chart notice the following:

1) Doji (undecided daily candle at support, low volatility candle) – happened on a Friday

2)Notice 9 day bearish trend prior to daily doji candle

3) This daily doji candle had an ATR of 60 rounded up (fyi). On daily I keep ATR and Stop Loss & Target the same for any daily trade setups

4) Stop Loss/Risk: 60 pips

5) 2% of $5000 account is $100 USD risk on trade

6) $1.66 PER PIP MOVE on EURUSD or trading lot size is: 0.16667

6) This trade would have made you from $100 to $200 USD within this last week (conservatively), by Thursday and/or Friday. (4 to 5 days).

Can you wait? Do you have patience to trade daily? Larger time frames are easier to trade then lower time frames, but it is all relative to personality.

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