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Explanation of ATR formula

1 replies

6 years ago #197946

Hi,

I want to define the Trailing Stop with ATR. There is already an ATR based formula in EA Wizard implemented you can use.

Please explain what the values mean: 0.1 * ATR (2)

What is the meaning of values 0.1 and 2 ?

Thanks 🙂

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6 years ago #197948

Hello,

the ATR(2) represents the Average True Range value of last 2 price bars. If you set ATR(14) it will reference the ATR value of last 14 candles. The first number is a simple multiplier. So the resulting value will be 1 tenth of the ATR value for 2 last price bars in the case you mentioned

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