The Average True Range is a common and popular volatility indicator, which arguably, for forex traders, is the ‘closest-thing’ to volume data. Developed as an indicator which was meant to track price bar range without skimping on intra-bar price changes, it has become a bit of a stalwart in the industry not just for filtering entry signals but also in guiding on position sizing. We look at this indicator by decomposing it into possible patterns as we have been doing with the previous indicator’s articles with perhaps the main difference being we look into patterns outside of the custom signal class by also considering the custom money management class for wizard assembled Expert Advisors.
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