SsamziegangStroll
Tue Jul 02 2024
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6 answers
1183
What should the ATR be set at for a 5 minute chart?
As a cryptocurrency trader, I often encounter the question of optimal settings for technical indicators. One such indicator is the Average True Range (ATR), which measures volatility. Now, the question is, "What should the ATR be set at for a 5 minute chart?" This is a valid inquiry as the ATR's effectiveness depends on the time frame in use. For a 5-minute chart, which offers a closer look at intra-day price movements, the ATR setting needs to be fine-tuned to capture the shorter-term volatility. Higher settings might overlook important price fluctuations, while too low a setting could lead to excessive noise. So, the key is to find a balance that allows for timely yet meaningful signals. This often involves trial and error, taking into account the asset's historical volatility and the trader's objectives.
