Average True Range Specs Question

[TheoCap]

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.

 

[Gary Fox]

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

Quote from TheoCap:

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.

 

[TheoCap]

Great. thanks.