OHLC Breadth - ATR>5%
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Hi @Vithal-Shinde / @Prashant-Shah ,
Sirs, this is with reference to the OHLC ATR Breadth discussed during Manthan Pro by @Vithal-Shinde - for long only strategies.
The ATR Breadth OHLC, ATR>5% is at 7.18% while avg value is 8.26%.
- So this essentially means that Volatility is going down right? There is also a bearish cross over below the ATR Breadth line.
- Since ATR Breadth is >5%, would this be a wrong time for fresh entries in long-only strategies? Or should we avoid fresh long-only entries when Breadth cross 10%/ 15%?
- What should we do to existing long-only positions if ATR breadth crosses 5% or 15%, whichever hurdle rate we use in sl. no. 2 above.
Thank you,
Siddharth -
Markets will be volatile this period due to National Elections
Regarding fresh longs one can take conservative approach with small position size
Yes ideally in routine avoid fresh long-only entries when Breadth cross 10%/ 15% for trading short term or Mid Term strategies (0.25% or 1%)
When ATR% raises shapely from 5% to 15% most of the times existing trades get stopped out immediate with a bull trap or a high pole -
Ok, thanks a lot!
