Do any daytraders here use ATR to set their profit taking?

Discussion in 'Trading' started by Kovacs, Jul 20, 2007.

  1. Kovacs


    I've been catching relatively big winners lately (0.35-0.50+), but I'm still not sure of the best way to take profits. That is, which point would be optimal in the long run given risk vs. reward.

    I used to take profits if the price closed on the opposite side of an EMA, now I'm using ATR. If a stock is in an intraday downtrend, and its ATR is $1.20, and it's already dropped 30 cents from the day's high at my entry point, then I set an exit 70 cents below my entry.

    I'm tired of scalping and want to get into longer-term daytrades; spanning 30 minutes to a few hours.
  2. i do. i always note the ATR in the futures contract i am trading. i look at ATR on various timeframes to match profit targets on various trades of different timeframes.

    volatility cycling is much more predictable than price after all

    the best thing is it objective, so it keeps emotion out of the equation
  3. maxpi


    ATR is the best way I've found to set a target.