Average True Range (ATR)

The chart below of the EURUSD was plotted using MetaTrader5, by MetaQuotes. It is the standard for charting Forex pairs, and is free to download from Deriv. It shows a daily chart, where each candle represents a full day.

At the very bottom you can see the ATR, which stands for Average True Range. The parameter, 20, indicates that it is an average of the last 20 candles. It’s current value is 0.00633. If you look at the last 10 bars as the price is dropping the ATR has gone up which means more volatility.

You can easily change this in MetaTrader5 if you want an average for a longer or shorter period. The average month has 20–22 trading days and 20 is a popular one to use.

A beginner’s guide to trading the Forex market using Digital Options and CFDs with the MT5 platform

by Vince Stanzione

Ready to discover more?

You can download my new 75 page Ebook How To Trade the Forex which will cover:

• The Simple Basics of Forex

• Who Needs and Uses the Currency FX Market?

• Popular Digital Options FX contracts

• What Makes a Currency Go Up or Down?

• Which Currencies Can You Trade?

• Trading commodities with Deriv

• Currency pairs you can trade with Deriv

• Fundamental Analysis

• Technical Analysis and Trading

• 3 Possible States for Currency Pairs

• Three Main Tools a Trader Can Use

• Chart Formats

• Power Tools for Forex Traders

• Support and Resistance: How to Make Money from a Sideways or Dull Market

• Deriv Meta Trader 5 – Step up to the next level

• Money Management and keeping your emotions in check

• 7 Top Tips to Help You Trade profitably with Deriv

• FAQs

• Glossary of Key Terms Used in Forex and Digital Options Trading

You can also put your new found skills to the test zero risk by using a deriv.com practice (demo) account.

To get your copy just go to: https://trade.deriv.com/forex-ebook/