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.
On chart notice the following:
1) (undecided daily candle at support, low candle) – happened on a Friday
2)Notice 9 day prior to daily candle
3) This daily 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.