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What are the recommended ATR parameters for analyzing cryptocurrency price volatility?

avatarsmahanNov 25, 2021 · 3 years ago1 answers

Can you provide some insights on the recommended ATR parameters for analyzing the price volatility of cryptocurrencies? I'm particularly interested in understanding how to use the Average True Range (ATR) indicator to assess the volatility of different cryptocurrencies. What are the key factors to consider when determining the optimal ATR parameters for this analysis?

What are the recommended ATR parameters for analyzing cryptocurrency price volatility?

1 answers

  • avatarNov 25, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, recommends considering the following ATR parameters for analyzing cryptocurrency price volatility. For short-term analysis, a lower ATR period of 14 or 20 is often used to capture intraday price movements. However, for longer-term analysis, a higher ATR period of 50 or 100 can provide a more comprehensive view of price volatility. It's important to note that these parameters are not set in stone and should be adjusted based on the specific cryptocurrency and trading strategy. Experimentation and observation are key to finding the optimal ATR parameters for your analysis.