Indicator LWMA_ATR

Market volatility - one of the most important indicators of market conditions.

This forex indicator is a modification of the standard ATR, changes affected the smoothing algorithm of the true values of the range, and it was replaced with a standard SMA is LWMA, so the latter is given more weight bars, and the earlier - less. In general, the difference is not significant, but the traders, the TC which essentially depends on the values of market volatility will have more quality and credible information on the average true range of price movement.

With information about the current market volatility, we can develop adaptive Stop Loss.

We can use the average of the trading range (Average True Range) for a certain period of time and multiply that value by some constant (factor) to determine how far away can be placed on our entry stop order. The advantage of using Stop Loss, based on the Average True Range is the fact that it is highly adaptive to current market conditions. The distance from the entrance to the exit point will be increased during periods of high market volatility and decline in the coming of low market volatility. Thus adaptive Stop Loss is an excellent way to manage risk in a changing market volatility.

Therefore, for convenience in the upper left corner of the deduced information on the current value LWMA_ATR, as well as the estimated average goals / adaptive stop-order.

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