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Old 05-21-2008, 05:31 PM   #3 (permalink)
David Waring
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Quote:
Originally Posted by Jerry View Post
Hello David,
Was reviewing you ATR video...as always, thanks for all you do...Your ATR video sort of sparked a question re. useing ATR to set trailing stop level....What do you think about and entry technique, that would place the initial trailing stop at 1 1/2 times the ATR...and then as the price movement moves on towards resistance, then changing the trailing stop so it trails closer to the price in order to protect profit, and not lose profit due to a normal market retrace..??? Perhaps Im being more theoretical than realistic...I dont know...can you comment pls....Thanks Jerry
Hi Jerry,

As far as how many ATR's to place the stop away I think that would depend on the strategy but as far as using the ATR as a factor in placing the initial stop and the trailing stop I think most would consider a good idea to try out.

How I think many traders use the ATR is in combination with other things like you mentioned in your above comment "when it approches resistance" tighten it up using the ATR so I think that line of thinking would be worth exploring.

Best Regards,
Dave
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