So you've obviously clicked on this video because you've been stopped
out of every single trade this week and you're absolutely tired of
this like, stop hunting.
Just specifically you you think like the whole world is against you
when it comes to your stop-loss, I'm here to tell you that you are not
the only one that feels that way.
I feel like I'm getting stopped hunted day in and day out.
So, in this video, I'm going to show you how to use the average.
True range indicator, the ATR indicator to help you set your stop
losses, so that you stop losing trades.
Welcome back to the channel, everybody.
My name is Artie and this is the moving average.
I shall.
We discuss everything day trading to keep you profitable on a
consistent basis.
So when entering a trade with proper risk management, you always want
to set a take profit level and a stop loss.
Level never ever, ever enter a trade without a specified stop-loss set
into place.
If you're unfamiliar with how to properly risk-managed risk management
skills, watch this video.
So what is the ATR?
The average true rain, basically, the average true range takes the
average price at that moment and how much is actually capable of going
up or down.
So it shows you a range at that price level the standard built-in
average, true range indicator shows you a in Pips.
So at a certain time, the average true range might be eight Pips, so
that means the price can fluctuate at that moment, 8 picks up or down.
Now, it doesn't mean that it's limit.
Into that, but that is most likely.
So, let's jump into the charts at number to show you exactly how to
use this indicator and which one is actually better than the built-in.
So we're looking at Euro USD right here.
The current price is 1.178 three and on the top of the screen, you are
going to click on indicators.
You're going to type in a t e r in the built-ins right here you have
the average true range click on that you are going to adjust the
settings so that it's more visible because I'm assuming that you guys
can't see.
This tiny little red lion, sell now that we've made it yellow and
awesome.
You can clearly see here that at this current price of Zoom this in
for you at this current price 1.178.
For the average true range is actually 3.6 Pips.
So, at this point, if you were to enter a trade with a stop loss, more
than three point.
6 Pips the likelihood of you getting stopped out is less but what you
should be doing.
If you only want to use this indicator that shows you how many Pips
stop loss?
You should have what you want to do is do 1.5 or 2x what the ATR is
telling you.
So at this point the ATR is 3.6 Pips.
What you want to do is stretch it to 7, pick up.
So your stop loss at this level right here on this timeframe should be
seven Pips that way, it'll be less likely for you to get stopped out.
So let's see what that looks like.
A long position right here with a 7pipe stop loss and a two-to-one
risk-reward ratio is going to get you 14 Pips cell right here is how
your trade should be set, but this does not work all the time.
There are better, ATR, indicator, Seer versus you, having to set the
price manually.
Just based on this line right here.
So we're moving this and removing the ATR indicator.
We're going to go up to indicators one more time.
We're going to actually type in average true range right here in the
public library.
The second option down is average.
True range trailing stops colored by H Potter.
It's Leviosa.
Click on that and add it to your chart.
Now you're going to want to adjust.
The setting is just a little bit so that it's more clear.
So, click on the settings right here, the inputs, you're going to keep
exactly as they are.
The natr.
Is going to be 5 and the natr multiplier is going to be 3.5 this
style.
However is going to be a little bit thicker so you want 100% color and
you want the second thickest line on the red and the green, I like to
make my green a little bit more vibrant.
So I picked the screen and just click.
Okay, so now you have an average true range actually on your price
action.
So when you get into a trade you can actually keep your stop loss.
On or above, I suggest above this line.
When its downtrending Oran and below, I suggest below what is
uptrending.
So, you would set your long position right here.
Your stop loss would be below this green line which would be at 13
tips and your take profit level is going to be 26 Pips.
This is going to be a safer trade for you now, that is simply using
the ATR to set your stop-losses.
You don't know if this price is actually going to continue up just
because you see an uptrend does not mean it is going to stay going up.
I like to add a couple of moving averages.
So type in SM a it's going to give you these smooth to moving
averages.
You're going to click it three times and we're going to have three
different smas we're going to change the first one to 21 make it white
and okay the second one is going to be changed to 50.
Change the 52 blue hit, okay?
James at the 202 yellow, it doesn't really matter what the colors are
just so that, you know, which ones you're looking at.
Now let's hide the average.
True range indicator for just a second you can see we've been in a
clear downtrend trading below all of the moving averages.
Correct.
Now we are starting to break through the 21 and now we're starting to
go up to the 50 moving average, get rid of that position, you can see
we're losing downward momentum.
So the price may go up.
If we break through this 50 moving average, your target can be this
200 moving average.
But again going against the trend is very dangerous.
You can see we've been in a very very strong downtrend so for you to
be in a by position, right now is reckless what you should be doing is
actually waiting for a rejection on the 50 line, which it's almost
doing right here.
Actually might go up, just above it, and then start continuing down
again.
So then you
Is your average true range indicator.
You put it back up, you can see that setting.
This is your stop loss might actually get hit, so you want to make
sure you're going in the right direction before you place a trade.
So let me hide the moving averages really quick and you can see if you
were to use this at any entry point in a clear and concise downtrend
keeping this as like a stop-loss initially and then continuing using
it as a trailing stop-loss you're doing really really well and you
would have only gotten stopped out right here.
So you see this downtrend?
Big bearish momentum right here.
You keep this is your stop loss and you Trail it all the way down.
You could have gotten out of your trade right here, and that right
there is a 93 pip, take profit.
So if you guys are still watching this video, guess what that means?
You like it.
So make sure you're smashing the like button down below.
Makes me feel good about myself, and that's pretty much it, that's how
To adjust your stop lost so that you stop getting stopped out.
If you guys really did enjoy this video.
I'd appreciate it.
If you hit that big red, subscribe button that to makes me feel good
about myself and we will see you in the next video.