ATR Expansion
Trade

When the ATR rises above its moving average, volatility is expanding. Trade in the direction of the expansion for momentum captures.

Volatility4H, Daily2:1 R:R

Rules & Configuration

The full rule set, required indicators, suggested configuration, execution flow, and performance parameters for the ATR Expansion Trade setup.

When the ATR rises above its moving average, volatility is expanding. Trade in the direction of the expansion for momentum captures.

ATR (14)ATR MA (20)ADX (14)
๐Ÿ“ˆ Entry Rules
  • ATR crosses above its 20-period moving average
  • ADX rising above 25 confirms trending
  • Enter in the direction of the current candle
  • Trail stop using 2ร— ATR

Common questions

What is the ATR Expansion Trade strategy?

When the ATR rises above its moving average, volatility is expanding. Trade in the direction of the expansion for momentum captures.

What indicators does the ATR Expansion Trade strategy use?

The ATR Expansion Trade strategy uses the following indicators: ATR (14), ATR MA (20), ADX (14). These can be configured directly in AlgoBars AlgoBuilder.

What timeframe works best for ATR Expansion Trade?

The ATR Expansion Trade strategy is best traded on the 4Hโ€“Daily timeframe. This can be adjusted based on your trading style and market conditions.

More Volatility Strategies

๐Ÿ’ฅ Volatility Squeeze Breakout ๐Ÿ’Ž NR7 Breakout ๐Ÿค Inside Day + Low ATR