Average True Range Technical Indicator (ATR) is an indicator that shows volatility of the market. It was introduced by Welles Wilder in his book “New concepts in technical trading systems”. This indicator has been used as a component of numerous other indicators and trading systems ever since.

Average True Range can often reach a high value at the bottom of the market after a sheer fall in prices occasioned by panic selling. Low values of the indicator are typical for the periods of sideways movement of long duration which happen at the top of the market and during consolidation. Average True Range can be interpreted according to the same principles as other volatility indicators. The principle of forecasting based on this indicator can be worded the following way: the higher the value of the indicator, the higher the probability of a trend change; the lower the indicator’s value, the weaker the trend’s movement is.

Here’s a chart using the ATP:

Alligator Indicator - This technical indicator consists of 3 lines. They are Moving Averages with various parameters. Here they are:

The First line, or the chap of alligator, is a line of balance to the considerable period of time. It’s used for the chart constructing - 13 period smoothed shifting average, moved on 8 bars to the future. The Green line, or the lips of alligator, is the line of balance for the considerable period of time, which is one more step less - 5 period smoothed shifting average, moved on 3 bars to the future. The Red line, or the teeth of alligator, is the line of balance for the considerable period of time, which is one step less - 8 period smoothed shifting average, moved on 5 bars to the future.

How to interpret the lines? When all of them are jolloped, it means that the “Alligator” is sleeping, and the more it sleeps the more hungry it gets. Of course, when it wakes up after long sleep, it’s very hungry and starts “hunting for food”, which is price, till it is glutted. As soon as it happens, it looses interest to the food, which is price, and then the balance lines meet at the same point. It’s when you should fix your profit. It’s time to close all positions and wait till Alligator awakes up next time.

This indicator’s aims are the following:

1. To become an easy for usage indicator to trade only in the current trade

2. To develop a reliable way of saving the money during the moving of the market bounded with the price channel

3. To represent united way for monitoring of the moving of the market

This week we will have a lot of posts about trading online, this can be a great option even if you have a very small amount of money. You can trade stocks and currencies (forex) from different countries and markets online, and commodities.

Online forms of withdrawing and depositing money make it very quick, but you have to be aware that if you don’t have the minimum knowledge, you will eventually lose money, and that’s not we are here for.

We will have new sections on the website about trading strategies and other resources, but of course, we will continue with the tutorials and we will keep adding material to the site, that’s it!