Technical Trading Tips and Techniques by 
Just a quick note on the Average True
Range (ATR) indicator. It is one of the most useful studies you could ever put on a chart. ATR is an indicator that usually resides either vertically above or below the bar
or candlestick price chart. It is an average measure of recent volatility that is
calculated as a moving average of price ranges within a given span of periods. When the
ATR has a high reading, recent volatility has been high. When a low reading is
given, recent volatility has been low. ATR is used by technical traders to determine the recent level of trading activity and volatility for a
given currency pair. The ATR can be used for setting logical stop-losses and
price targets based upon recent price ranges, among many other uses. If you don’t already use ATR, you should definitely check it out.
- James
James Chen is the Chief Technical Analyst at FX Solutions, a leading Forex broker. He is also a registered Commodity Trading Advisor (CTA) and a Chartered Market Technician (CMT) Level 3 candidate. At FX Solutions, Mr. Chen writes daily currency analysis, conducts forex trading seminars, and has authored numerous articles on currency trading and technical analysis for major financial publications. His upcoming book, Essentials of Foreign Exchange Trading