Average True Range on Price Chart?
i use atr stops in this case:
for buy orders: Low[1]-iAtr(blahblah)
for sell orders: High[1]+iAtr(blabla)
of cource i modify my orders only if SL is better then before.
regarding the %based atr, should not difficult to do, and maybe even intresting. i will give it a shot when i have some free time.
edit:
and congratulation to your first win ;)
btw, since you are a previously black jack player i have some questions to you regarding moneymanagement and games theory. but i am going to write you a pm about that, if thats ok.
greets z.
hi ubzen.
i have quikly wrote the indicator. no guarenteed bug free, but guaranteed not optimized code ;) just fast written to show results.
if you set showTrend to false the result is similar to the normal ATR as you can see. i find the showTrend true more intresting.. also i addet a aditional ma. have fun to play around with it.
calculation does not use the highes/lowest value of the period like the normal ATR but instead the Change for each candle, i think that is responsible for the extra noize.
Thanks again Zzuegg. You're turning into quite the mt4 programmer. You've put allot on the table here. I'd be sure to fiddle around with this all week. Using the change of each candle is much more realistic from a theoretical or trader's instant point of view. ROC was the next indicator on my learning list anyway so this provides a nice transition.
I wish you nothing but profitable trading in the long run my friend :)
-Zen-
i thought over this method. and please be aware that since the percantage change is used as base the indicator tend to rise faster than it false. simply because:
1.0000€ -> 1.01000€ =1%
1.0100€ -> 1.00000€ =-0.99009901
//z
Oh, i'm fully aware of that. If you look at your chart in this thread. Where the spikes happens is the areas of the most interest. Obviously, turning a volatility indicator into a percentage based indicator would have some draw backs like the side effect you mention above.
My2cents, use the volatility spikes as a drum-beater (something that generates frequent signals) and filter out with a trend indicator (if you're a trend trade) with something like bull/bear power which would let you take positions in th Primary direction of the trend. If you're a counter trend trader then use something like RSI with over bought/sold levels for filter. One thing for damm sure trend and counter-trend cannot occupy the same space at the same time. You as trader would just have to decide. Well 2c again, if I had a crystal ball I be rich and on the beach lol.
-Zen-
Oh, i'm fully aware of that. If you look at your chart in this thread. Where the spikes happens is the areas of the most interest. Obviously, turning a volatility indicator into a percentage based indicator would have some draw backs like the side effect you mention above.
My2cents, use the volatility spikes as a drum-beater (something that generates frequent signals) and filter out with a trend indicator (if you're a trend trade) with something like bull/bear power which would let you take positions in th Primary direction of the trend. If you're a counter trend trader then use something like RSI with over bought/sold levels for filter. One thing for damm sure trend and counter-trend cannot occupy the same space at the same time. You as trader would just have to decide. Well 2c again, if I had a crystal ball I be rich and on the beach lol.
-Zen-
i recently developed a lot of these, i call them MarkteNoize indicators. like the top one in my picture. So basically they show all a regualr noize, with some specially high/low peaks. i am currently trying to develop a whole system base on such indicator. This one shows that some big change happend, but i have also one which shows a high probabillity that something big will happend. Thats kind of my first predicting indicator. Next step i think will be to try a combination with 7bit's snowball system, since that is designed to trade such area's of big movements.
//z
"7bit's snowball system" ah, you don't say ;).... Well I'd have to do a search on that if your know what I mean. It's all probability AFAIC, if you don't like un-certainty aka Risk, you've choose the wrong business. In Forex "will-happen" aka forecast is always preferable to "has-happened" aka lagging. I think we're on the right track to adding something more to our trader's tool box.
-Zen-
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Ok, indicators are not my strong suit. They seem fairly simple code-wise but I've been too busy lately to complete my studies on them, (sadly for me). After what I would call phase one learning with Fundamental Trading, I'm in learner's cycle back to Technical Trading. I'm curious about ATR (Average True Range) seems there are a few good systems out there based on their stop-losses and break-outs. What I don't like about it is that it's a) not percentage 0-100 based and b) not drawn on the price chart. This makes it difficult for me to use as Trailing Stops (like my now favorite Envelopes); also, makes it harder to use as Break-Out (support/resistance).
The question here is, does anyone have a ATR indicator which is drawn on the Price chart? I've just done a quick google a minute ago but I could not find one. BB offers a good example of how to use ATR as Stops in this Tread, however I'm still lost and want the visuals on the charts.
Another reason for this post is because I'm kinda excited. I just placed my Very First Real Forex Trade today on my macro account. It was a winner of a buck 80cents :) and I wanted to thank everyone who've helped me get to this point. Yeah I know this is not a social forum, but we're all humans after all. So there again, if you've ever posted a response on the same page as me, I'd like to say thanks and you guys know who you are. Well I'm not gonna bust back in here crying about blowing my first few accounts which is expected of a newbie like me, so you guys can hold me to my word on that. Anyways back to ATR indi help....