Question: How to take advantage of the ATR indicator?

Question: How to take advantage of the ATR indicator?

Answer

There are several ways to take advantage of the ATR. A simple method is to open a position when the price moves more than 1 ATR from the previous session's close price. This works because usually when the price moves by more than one ATR it is because there has been a change in volatility and usually the asset will follow a continuous movement in the same direction. The ATR can also be used on any time frame, from 1 minute to 1 month, which makes it useful for any type of trader.