2.ATR can prompt the opportunity to enter the market. Generally speaking, before the real trend begins, there is often a relatively calm consolidation period, and after this calm sideways trend, there will be a breakthrough. If there is a corresponding upward breakthrough in the real average fluctuation range, it shows that this price breakthrough is credible and there is a great chance of a trend in the later period.
3. In the market, many people will take fixed-point stop loss. But the fixed-point stop loss is not accurate enough. Different currencies have different volatility, and the same currency has different volatility in different periods. If you always use fixed-point stop loss, it will be effective for some currencies, and it will often be swept away for some currencies. If the fluctuation difference between different currencies belongs to the characteristics of currencies and can be solved by adopting different stop-loss points for different currencies, it will be difficult to find the fluctuation difference of the same currency in different time periods, which will easily lead to stop-loss. By tracking and using ATR index to set stop loss, this problem can be well avoided.
4. It is easy to set the stop loss with ATR index. The most common method is to select a benchmark price, adjust the coefficient and then add an ATR. The returnees' fair takes the 10 moving average as the benchmark and takes half of ATR as the stop-loss interval.