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farsight

Just to be a pedant in return, I said ..

The ATR, in the case of the XJO, is the difference between its High for the day and Low for the day expressed in points

1. The XJO Close for yesterday is the same as the Open for today and always is. In the case of the XJO (and other indices on the ASX) the references to the previous Close are redundant and unnecesarily complicate the description.

2. Wilder originally used 14 days as the moving average length. Since the 1978 the ATR has been adopted for many uses, including for trailing stop losses, which is one of the uses I put it to. I use 90 days rather than 14 days to ensure very short-term volatility or short-term stagnation doesnt result in a stop that is too close, nor too far. Forex traders often use ATR stops with 250 period calculations (about a year) although 21 is also commonly used.

Regards

-HBG

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Trade the market you see - not the market you hope for!