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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Canuck Dave who wrote (208068)	12/21/2011 10:49:24 AM
From: stuffbug	Respond to of 312730

CD, your granddaughter is a real sweetie. But I am sure you already knew that. ATR = Average True Range. ATR is the basis for about half of my analysis. It is the maximum price swing from yesterday's close to today's close. So, in most cases, ATR is simply the difference between the day's high and low. However, if there is an opening gap that does not get filled during the day, the previous day's close is the basis for the high / low. I use a 40 period simple moving average of the ATR. As of yesterday's close, this was 0.95 for RIMM (.87 for RIM.to). Intermediate moves (2 - 4 weeks) generally run between 4 and 7 ATRs. Retracements within the move are usually between 2 and 3 ATRs.