Quote from actionzip54:
It shouldn't make that much of a difference if you are using some kind of volatility measure to size your positions. If you use something like X ATR's as your stop size it allows you to size up or down accordingly.
Markets move from expansion to contraction. If your looking for a powerful move one way or the other you should be excited about contracting ranges.
Yep, I use ATR as you suggest and yes, I do look at the reversion from contracting to expanding ranges. One problem is that sometimes it can stay in a narrow range.