Tuesday, December 14, 2010

Average True Range (ATR) doesn't provide trend

Average True Range (ATR) graph is indicator of volatility. ATR is a unique volatility indicator that reflects the degree of interest or disinterest in a move

Points to remember:
- High cost shares will have higher ATR than low cost shares

Use:
- When used with other charts this chart can help in identifying/validating the enthusiasm behind a move or breakout. For example, A bearish support break with an increase in ATR would show strong selling pressure and reinforce the support break.

Friday, December 10, 2010

Technical Chart Reading

In the image around aug 17th there is discrepancy Chaikin Money Flow (CMF) chart and Accum dist chart.
If you feel like pro would you mind commenting on the same