Hey all, Was wondering the rule-of-thumb, industry standard, variables most people use when calculating their ATR stops for intermediate- term (swing) trades. 1) How many times the ATR? 2) How many periods (days) to calculate the ATR? Thanks.
Hello TheoCap, Check out the writings of Chuck Le Beau. Read his ATR Bulletins, and especially the Chandelier exits. http://www.traderclub.com/discus/board.html Le Beau uses a ATR20 for swing trading, though many others use 14. His exits vary between 2 and 3*ATR20 Gary