ICON / BitcoinPanjang
Will we see ICON trend change ?
ATR Calculation
In a nutshell, the true range calculation aims to determine the range of a trading session using the open, high, low, and closing price data. The formula to calculate true range:
Current high minus the previous close
Current low minus previous close
Current high minus current low
Once you have the true range value, you must choose a lookback period, Welles Wilders wrote about this in his book from 1978 titled New Concepts in Technical Trading Systems. He suggests using 14 days, and apply a moving average to the set of values.
How to use ATR with Price Action?
The use of ATR in the combination with price action is very useful in gauging trends. When price trends up / down while ATR is at a stable level - around 100 (BTC), is an indication of the continuation of that trend. When price trends down and ATR falls below 20(BTC), this is an indication that selling is being exhausted. When price trends up and ATR breaks 200(BTC), it indicates exhaustion of buying.
In a nutshell, the true range calculation aims to determine the range of a trading session using the open, high, low, and closing price data. The formula to calculate true range:
Current high minus the previous close
Current low minus previous close
Current high minus current low
Once you have the true range value, you must choose a lookback period, Welles Wilders wrote about this in his book from 1978 titled New Concepts in Technical Trading Systems. He suggests using 14 days, and apply a moving average to the set of values.
How to use ATR with Price Action?
The use of ATR in the combination with price action is very useful in gauging trends. When price trends up / down while ATR is at a stable level - around 100 (BTC), is an indication of the continuation of that trend. When price trends down and ATR falls below 20(BTC), this is an indication that selling is being exhausted. When price trends up and ATR breaks 200(BTC), it indicates exhaustion of buying.
Penafian
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