Average True Range: A Good Indicator for Emini Trading
Indicators are an alphabet soup of average, ranges and misunderstood indicators. None are more misunderstood the Average True Range and the criticisms of this indicator are legion. I hope I can clarify some of the problems people have with this indicator and give you a good methodology for using it properly in your emini trading.
When I am feeling particularly lazy (which is more often than I care to admit) I bracket trade the ES with 12 tick stops. This is a system that is fairly effective and will, by and large, keep you out of harms way, but is annoying to watch the price continue upward on days when there is a high degree of volatility. Let me ask you, don’t you think there must be some way to calculate just how high, at least theoretically, a trade might go?
