Hi everybody Alex du Plooy from Expert4xand I hope this video gives you lots of money-making forex trading ideasin this video we're going to be looking at the ATR indicator the average truerange indicator and how you can use it to make lots of money in the forexmarket now I
would really like you to pay quite a lot of attention to thecontents of this video because that is not an idle threat or a marketing phrasethis indicator has unbelievable information that it can give you now I'mgoing to introduce this indicators saying that every currency in the markethas its
own profile now I've got three four currencies on the screen at themoment and you can see they all have different movements during the day andthese bars are one-hour bars there should be 24 of them and they show howvolatile currencies are during various stages of the day now too
many they lookthe same but to the trained eye there are some really important differenceshere and that any trader should be aware of for instance this currency year has afunny one where it peaks at a certain time of the day in general if you lookat these ones you've got
the Asian market over here the UK market over yearthe US market where both the UK and the US open at the same time that's why youhave a peak there and in a scroll that goes right down into the quiet Asianmarket again that's a normal type of movement but
as you can see there aresome currencies that are different for instance here you've got a countrythat's got the same level of volatility in the Asian market as it has in the UKmarket even more then you have one Senate show that show the same some haveone peak in the
u k– US market others have two peaks and some don't go down asmuch as others during the roll down to the Asian market so each one has its ownlittle personality and you need to be aware of it now the ATR is a fantastic- to give you an idea
of the personality of each particular currency now how doyou load this particular indicator and you go to empty for you go to theindicator icon click on it you select oscillators now oscillator is one waysomething goes either oversold and overbought and oversold and overboughtso it oscillates from high to
low and the true range indicated as the same butit doesn't it uses high volatility and low volatility high volatile and lowvolatile as its oscillation so you then select the average to range the ATRindicator that's how you load it and I'm not gonna go into it into a lot
ofdetail because it's a very very simple indicator to understand now I'm gonnaexplain it to you from a daily perspective if you want to know what theaverage daily movement is for instance for the euro what you could do is youcould look at the range in other words the size
of the candle a daily candlethe high to the low you can measure that for the lost let's say 20 days and youcould then get an average for the last month's trading month by adding themtogether and averaging them out and that would be the daily average true range ofthe
currency that you're measuring so all it does is averages the range and Ilike to think of them as candles it's not a hundred in curry but it's closeenough to be correct the candle sizes that you're looking backwards on so youhave to explain to you you can do that
on a daily basis but you can also lookgo down to the one-minute candle you can say what are the sizes of the one-manminute candles in the last 50 candles and you and you would then go to theinput screen and you would put 50 as the period because you
won't want to lookback 50 candles and it will then bring out the indicator showing you theaverage over that particular period so that's how that's how this one worksit's very easy it's basically showing you the volatility of the currency overa period of time measured by what I say is
the candle size and that's goodenough for you to understand what it means and also very important tounderstand this this measurement it is a measurement of volatility it does nothelp you with direction of trade so if we look at this chart that mt4 providesit is saying okay there's an
at a time of low volatile oh and then it shoots upthat you can actually see it on the chart it shoots up high and then as itgets high it starts consolidating and starts going low and then when it's lowit shoots up again and so it's it it gives
you the high volatility times andthe low volatility times win and in general when it's high it's likely toslow down and when it's low it's likely to explode so it provides informationfor explosive moods and also for consolidation moves in the market so theATR helps you compare the volatility of
different currencies compared to eachother and I'll show you a good example of thatand the idea helps you to compare the volatility of a one currency at varioustimes of the day and you can act make it you can make money from this so let'slet's have a look so on
your screen you can see the 360-degree Forex indicatorthat we've upgraded just recently and it really gives you a view of the wholemarket based on a number of indicators a whole host of indicators you can see thehow every single currency compares on every single time frame for every fourmonths
the major indicators and you can also see the relative strength of eachcurrency so it is really a 360 degree indicating that you can see the wholemarket in one go but what we're interested in today is we interested inthe ATR so what I've done is I just fold it
literally fold it away all the othershid the ones I'm not interested are and now I'm only looking at the ATR and I'mlooking at about 27 or so currencies I'm looking at all the timeframes that we'dlook at but I don't really use the shorter time frames I use the
sort ofdaily one's mainly but let's let's get intothis right away so how does this help you firstly it tells you whichcurrencies other most volatile currencies in the market and which onesare the least volatile so I've sorted the daily column you can see I've sortedit and the euro euro
pound is the least volatile currency because it only moveson average and this is strictly you must understand this an averaging indicatoron average it only moves 42 perps a day whereas the pound Zealandmoves hundred and seventy-four perps a day it's four times more volatile thanthe hero pound now and
then it's as you can see it's sorted all the currenciesin in order so what how does that help you in any way well firstly if you abreakout trader or a trained trader you're looking for the fast moves thatreally move in the market you should be using these currencies
at the top hereif you use using sideway techniques that dawdle in the market then you should beusing these currencies down yeah that's one way of using that information theother thing is use the to determine what's targets and stops you you needfor instance if you trading the Euro Pound
you shouldn't ever have 200 pipstop or a 200 per target the the power the Europe pound hardly moves in a daybut if you're using the powered New Zealand it's much probably ok to have150 pips top and Ireland 50 per target so you can size your targets and yourstop
losses according to the volatility of the particular currency and this isimportant not only for manual trading but it's also important for expertadvisors or Forex robot trading you need to know the currencies and you need toapply the appropriate settings for those particular currency now and I fictiondid he call
this my vibration rate of a currency because it shows you how muchit vibrates on a daily basis or on a four-hour basisyou can get an idea of that type of thing now yeah I've got a the indicatorloaded on a one-hour time frame and the default setting is 14
so stuck with thatbut every the every column here is a day every column here is a day now if youlook at this in this very carefully you will see that this currency peaks at thesame time every day and goes to the low point at the same time every
day so yougo peaks in the middle low point at the end peaks in the middle a low point atthe end peaks in the middle low point at the end fixing them at all like winterthen fixing them at all low putting it in peaks in the middle low point
now Ipromise you that kind of information is gold in the right traders hands you canmake a lot of money knowing that you can virtually spot the high and the low forthis currency every day so this kind of pattern is what forex traders look forwhen they forget trading Forex
I leave it to you to work out how to use thisinformation but this is the kind of information that the ATR provides as Isaid it's gold in the right hand now one thing I just need to make you aware ofthat sometimes price charts have five tradingdays and sometimes
they have six trading days so the broker trades a portion ofthe Saturday or a portion of the Sunday and that sometimes distorts some of thereadings that you will get when using this indicator but it's not serious I'mjust making you aware of it now you can see quite and
I'm going to just run youthere's a small candle so that's likely to be a Saturday candle so you guysSaturday let's go one two three and four five and then you get another smoke acandle one two I started with these are small candle day let's go to anothersmall there's
a small one one two three four five there's anotherso there's gaps of five between the small ones which shows you that theinformation then is collected on a Saturday can distort the the readings onthe ATR so you might find one trader has different ATR readings to another traderbecause of
the break or the broker policies regarding five days and sixdays and also in certain cases the the cutoff points of the candles but that'snot serious because if you are on your own of applying this consistently you'remore interested in the differences between the kook your own currencies andnot other
people's charts just just a bit of information for you alright sowhat does the ati help you with firstly it helps you decide which currencies aregood breakup galaxies and trending currency for instance for instance wehave a technique called the double in a day technique it's a technique where youcan
W forex trading account in one day use on one tray now it makes commonsense that if you're using that technique you want a volatile currencythat will trained quickly during that particular day so you'll be selectingfrom the very top of this one and that will provide you with a
trend that willdouble your account in one day you won't go down here and try and double youraccount you know I see people trying to double their account using the euro forinstance it's only mu 60 pips a day it's not going to do the jobthe the kind of see
that we find does the job based is the bounty and thatcountry but this is these tables are very important for that kind of thingand using the shorter timeframe charts it tells you when the currency is likelyto move with more volatility and when it is likely to rest and
trade sideways nowI've shown you that example two Wyck everyday was virtually exactly thesame turning point for this particular currency and it will also help you sizeyour targets and stops for Manuel and ei trading so in other words lo voluntarycurrencies smaller stop smaller targets I voluntarily currencies bigger shopsbigger
targets now I really hope I've given you some ideas and someperspectives of the forex market the ATR is really a good indicator that can giveyou the information that you need to really trade it more efficiently thanyou did in the past the ATR itself does not give tradingsignals but
the information that it provides is critical for you to make alot of money in the forex market thanks for watching this videoif you've liked it please give it a like if you haven't subscribe it's subscribeand click the bell but most importantly share this video you can do this
in manyways message your friends send them emails or share it on social media onFacebook on Twitter and those kind of places so from me Alex deploy cheerio you
