The Gideons ATR Indicator is a technical analysis tool that combines a slow and fast ATR (Average True Range) indicator to provide a smooth single ATR value. The ATR measures the volatility of an asset, which helps traders in technical analysis and formulate volatility-based trading strategies. Gideon’s ATR Indicator is designed to help traders identify potential market volatility and signal to buy or sell forex trade.
Why is Gideons ATR Indicator Important?
The Gideons ATR Indicator is important because it helps traders identify potential market volatility, which is a leading indicator of price movement. Higher volatility indicates potential for an increased price movement, which can be used to enter the markets while the volatility increases. The Gideons ATR Indicator works well for new and advanced forex traders and works well in all intraday price charts as well as the daily, weekly, and monthly price charts.
How does Gideons ATR Indicator Work?
The Gideons ATR Indicator works by combining a slow and fast ATR indicator to provide a smooth single ATR value. The ATR measures the volatility of an asset, which helps traders in technical analysis and formulate volatility-based trading strategies. The Gideons ATR Indicator is designed to help traders identify potential market volatility and signal buy or sell forex trade.
What are the Benefits of using Gideons ATR Indicator?
The benefits of using Gideons ATR Indicator are as follows:
- Helps traders identify potential market volatility.
- Acts as a leading indicator of price movement.
- Helps traders in technical analysis and in formulating volatility-based trading strategies.
- Works well for new and advanced forex traders.
- Works well in all intraday price charts as well as the daily, weekly, and monthly price charts.
What are the Limitations of Gideons ATR Indicator?
The limitations of Gideons ATR Indicator are as follows:
- The indicator does not provide trading signals but should be used in confluence with other indicators.
- The indicator does not provide a profit target.
- The indicator re-calculates based on the price changes so traders should consider them while trading.
Historical Background of Gideons ATR Indicator
The Gideons ATR Indicator was developed by Gideon, a forex trader, and writer. The indicator is an improved version of the classic ATR indicator to detect volatility.