MULTIPLE ATR's AS ENTRY SIGNAL

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This is being done on the fly and I will flesh it out in a later post. While examining the use of a trailing stop ATR as a risk management tool I placed three different ranges of an ATR trailing stop on the charts. It then occurred to me that these three ranges could be used as an entry signal. Something may look good from the scans that I do but then it has to be checked against the positioning of the multiple ATR's. To save typing it out I will simply call this creation: MATR.

Whether it is a valid approach to making a buy or sell decision is not known. This is something that is being experimented with. The time frame for the look back period of the MATR is the same, I am using 6 days for now. The three ranges I am planning on using are 1.5, 2.25, and 3. Narrow to wide. The thought behind using the MATR is that if a stock price is below an ATR stop then there is no reason to even enter a position. With this situation it is not possible to find a risk management level. No risk management, no entry.

With the MATR what I am looking for is a situation where the three ranges are stacked from wide to narrow. 3 at the bottom, 2.25 in the middle, and 1.5 on top. An entry can be initiated when this look is present on the chart. The other addition that I am looking at is a Hull Moving Average, HMA. Seems to have a good response time.

The two charts below are BRG.V and CA.V. I definitely got the crayons out for this one but I want the look to be as bold and simple as possible.

Since this is new I have yet to work out a fully fleshed exit strategy. It will either be a close moving below the HMA or a change in the structure of the MATR. I have some ideas about the exits but will work out a more detailed plan during the next week.

Thank you for your time.