How to Use ATR Indicator to Set Stoploss
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- čas přidán 7. 12. 2014
- Have you ever put on a trade only to watch the market hit your stop loss, and then continue moving in your expected direction?
It sucks, right?
And that’s because your stop loss is “too tight”.
So, what’s the solution?
Give your trade room to breathe.
This means your stop loss should be wide enough to accommodate the daily swings of the market.
Now you’re probably wondering:
“But how much is wide enough?”
Well, you can use the ATR indicator and I'll share more details in this video.
So go check it out.
Thanks for watching!
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I came here expecting "hey hey hey whats up my friends?" and instead i got "hello everyone" disappointed.
me too haha
@@adencena 😂
:D
Yeah , but video is 6 years old 😂😂
Hahha...can understand :D . On a separate note, I hate the overuse of the term "Friends", "Fraands" and "Doston" by the "not-so-cool Indian youtubers" who aren't eductated enough to understand how irritating that is. Just say friends once and don't say it again.
Thank You for this video, I really appreciate it.
Great Video Rayner, thanks very much.
Do you know how to use ATR and Pip in the stock market price? Instead of counting in pips, so you count it in let's say cents per increment?
thank you for this Rayner Teo
Hi,
Great video!!! Any idea about to set take profit? What the setting of the ma in your chart?
Thanks
Wow this is what im looking for! Thank you for sharing
Does this ATR stop loss working for you?
Thanks a lot, Rayner.
Clearly and well communicated
As the sl has to be placed when it invalidates the trade , I don’t get how the 2 ATR will invalidate ?
hi sir, how to set centre point of atr in gold chart??
this was very helpful thank you.
Rayner, from the examples you used in the video on how to read the ATR, so you only look at the first two numbers?
Hi, Can we consider 2 ATR as stop and 2.5 as profit target in 5 minutes time frame commodity day trading purposes ? Please advise.
Would 2x atr be enough considering spread? Or would you do a 2x the atr plus the spread? Thanks for your videos very much
I watch your video regularly. In fact I learnt price action strategy from your videos and books.
I would like to appreciate you taday, for this ATR concept. Which saved my 200$ worth of money which is as well as my Capitol. I follow your steps sincerely.
Thanks.🙇🙇🙇
3:15 Your stop loss seems to be on a resistance are. Wouldn't it be better to adjust it accordingly so that it's just above it?
great abbreviation ,, thank you
Hi Rayner, is 2ATR the standard? How about if I use 1.5 ATR? thanks
Did you achieve your large returns on usdjpy and oil by using atr on 4 hour timeframe - or daily chart? Thanks!!
Very useful video.
hi sir, does stop loss consist spread pips also?
Is 2 ATR recommended for scalping? Day trading?
Why 20 period instead of 14 and in this case would the TP level be 33 pips with SL 66 pips?
is there math calculation of how many atr for different time frames such as ATR on daily or h1 ...
Well done
Some traders divide the number do you know why this is ?
Thank you much.
Hi rayner. can we say 1 ATR is more aggressive ? and 0.5 ATR is too tight ?
Is the 2x multiple common among traders? Why 2 as opposed to 3 or 4?
which broker are using? I see that your MT4 platform is trading commodities!
Can this strategy be used for stocks?
I use a similar stop calculation using atr , just 1 small difference , I apply a moving average to the ATR to smooth out the variances
Would you mind to share it??
Is your ATR stop loss working?
Thanks man
HI Rayner, what made in decide to use 20 period ATR instead of default 14 period and also why stop loss set at 2AtR instead of just 1ATR..us it because based on your experience u Unger stopped out every time u use 1ATR as stop loss??please explain
Do you take trades with a risk/reward less than 1-1 due to the ATR? If so do you find this more profitable taking double the pips SL loosers??
thank you very much !
Cheers razorcliff hudge!
Hi Reyner, tnx for a good and direct to the point tutorial for atr as stop loss. What atr level can you recommend for a swing trader that usually hold stocks not more than 2 weeks? Is 2 atr good as well?
You profitable yet broskie?
which moving avg. do you use?
Thanks mate helps alot
Cheers Amila Wickramasinghe!
Why did you choose 20 period? What period would you use if you were trading 15min timeframe?
Hi, thank you for the explanations of the ATR topic. What time range would you recommend to set the ATR indicator for trading stocks (swing trading) 9, 14, or maybe 20 days?
Hi Reyner, really good video. .
One I want to ask is How about the spread?
Do we need add the spread value, so it will be *ATR×2+spread ?
Thanks Reyner.
Billy.
Hi....Rayner ...JUST I WANT EXPLAIN U 123 PATTERN AND PROS AND CONS .....THANKING U
Hey Rayner. I've been watching and reading your ebook on trend following strategy using MA. Just one quick question. If I set a pending order, then it got hit. How do I go about setting my stop loss using ATR? Because I might not be infront of my screen during the order executed. Please advice. BTW love your vids and your ebook. Thanks for sharing great and easy to follow content.
you can use the time and price of the trade to look in the charts than set the sl accordingly
Hey Rayner, I double-checked the calculation and think there's a small mistake. You said 117.25 minus 66pips is 116.59. How pls? I recalculated it and got 51.25 pls, clarify me on this. Thanks.
What about profit target can we use ATR
Hi Rayner.....as I am watching your video's.....your entry in all videos all time in a exact support/resistance zone....how you enter with exact confirmation that it is final zone.?.(previous structure will help us to find us S/R zone..but how to get confirm it is not going to cross).......and how you take entry?
Thanks you, Rayner!
When have I to update my stop loss?
Thanks
Hi Rayner, I was wondering two things...
1. Do you put the stop order in your broker (so that it can be seen and triggered by market makers) or do you work with mental stops and manual monitoring, so that the stop loss is not just triggered and the move reverses straight away?
2. If you put the order in the broker, could you let me know until what position size that idea might work? ie, I wouldn't feel comfortable taking positions of $50,000 or $100,000 and leaving an pending stop loss to be seen by market makers, would you in that situation do it? or mental stops better in that case?
Thank you!!
Rayner Teo And can I ask you what position size (as in dollars amount) you have seen working fine that way just for reference pls? I could send you an email if that's easier to clarify there pls?
thank u
sir, first of all thanks for sharing such valuable information. however, practically specially in option trading (Call and Put options), 1% or even 2% stop loss is easily hit. I am mostly doing call put options. so please advice me what is the SL in option trading. thans
the SL on binary options does not exist...
Do I need to update Stop Loss as ATR always change number overtime?
if recalculating everyday and the new ATR stop loss falls below my original then is it time to exit?
Why multiply by 2 and not like 1.1 ?
Why some traders use SL with ATR * 1.618 instead 2 or 3 multiplier? Do you recommend to use ATR SL for scalping strategies?
1.618 is fibonacci
Hi, how can I contact with you plz?
does this work on crypto
why 2 ATR stop loss ?why not more or less?cheers
The beginning theme song had me feeling like I’m watching a busy works beats video l,faoooo
What software are you using? Looks great. Thx.
It's MetaTrader. You may use version 4 or 5, sometimes being restricted by the broker system you are working with.
Hi Rayner,
How about using ATR as an entry point? how do we use it? and what MA combinations do u use? Thanks
What about MA combination? What do u use?
MA 20 and SMA 10 cross.
Does the ATR have to be set at EMA or is the default RMA sufficient? Thank you
I think RMA is sufficient because I’m using that only. And it’s working nicely 😊👍
Depends on the time frame you're using. 15 minutes below should use EMA to catch up with the lags.
so stop you use is 2ATR. Period u used is 20. how to fix target if I use 2ATR as my stop
If entry is @ 10 and ATR (Average True Range) is 1.5 then stop loss is 10-(2*1.5)=7 correct? but what about target ? can I use ATR to calculate my target profit?
Hi Rayner, quick question: One stoploss technique you mentioned as well is to put it in a location where your initial trading idea is invalidated - where the invalidated area should be where the stoploss is placed. Is there a specific time where you would use the ATR indicator instead of the Invalidation area? Or is this another technique where it bores down to the trader's trading style?
Thanks,
Nappy.
Thanks for the reply man!
Maybe a good choose for the ATR Stop would be if the invalidation Stop is too far away.
Love your vids sir Rayner. Question tho, why did you subtract the product of the ATR on the first chart but added the product of ATR on the second? Aren't stop losses supposed to be lower than your entry point?
Those are for short trades
the first, he went long , the second short
my question excatly. kept looking someone who commented on that. Thank you, Navneet and Promise for the answer. Have to really understand what/how to short trade.
nice
Good👍👍
How do you trail the stop loss after setting it?
in MT4 you can just drag your SL and TP around even are already in the trade, you can also right click on your trade and modifiy it to be more precise
You know that there is an indicator that does that for you, you don't need to manually calculate it..Check ATR Trail Stop indicator....same calculations 20*2
I believe it's called the Chandelier K
Could be, I was talking about ATRTrailStop...you'll find it on forexfactory. Will show you the Stop Loss with Dotted Lines.
done..
Is this real?
Is it ok if i use atr *2 on 1hr chart?
What time frame worked best for you with this ATR stop loss?
@@carinemarcelle5867 usually atr at 1.5 the atr. I later abandoned 1hr chart in favour of daychart. 1.5 atr for me is good enough for the job
@@natenut1694 what other indicator do you use before entering?
@@carinemarcelle5867 im following a forex pro trader from the states. He gave away the blueprint for it. Its very heavy on indicators. Its so successful he uses it to trade on behalf of a big company
not good idea to cut more losses
Hey hey whats up my friendss
With, hey hey friends ?
Dude, the formula is not that complicated. Just make a 30 second section with an explanation and offer viewers to skip ahead if they are not interested. But some are interested because the algebra makes it more clear what the indicator is doing
30$ x the number of shares you have is reeally a big lost
No, you just take a smaller position, that's all.
x2 the ATR doesnt make a logic.
I dont think you know how to read the ATR. ATR is not displayed in pips... it is in percentage. Go and learn something before posting rubbish.
Lol
U know this video is old when MT4 is being used instead of Tradingview...
Hey you're pronunciation is Terrible I don't understand
Please work on your English Speaking "AAAAAAAAAAAAAAAAAAAAGHHHHHHHHHHRRRRRRRRRRR"
Thanks