JJN Scalper ATR

One of the few constants in financial markets is that they rotate between times of consolidation and periods of price trend. A volatility indicator, such as ATR, may make excellent use of this universal market characteristic. The JJN Scalper ATR Indicator is an entire trading system that takes advantage of this natural market feature. It also gives traders entry, exit, and stop loss levels.

What is the JJN Scalper ATR Indicator?

Average True Range (ATR) is a pure volatility indicator that was established originally for the commodities market. However, over time, traders from all markets understood its potential and began to use it to fine-tune their trading signals. The ATR provides no indication of price trend. However, because markets shift between trending and ranging phases on a regular basis, any decrease in volatility, as indicated by ATR, can be a leading indicator of large price swings.

Setting up the JJN Scalper ATR
Setting up the JJN Scalper ATR

JJN Scalper ATR Strategy

The JJN Scalper Indicator is a scalping strategy that displays the levels of entry, take profit, and stop loss. There are two primary rule for trading with the JJN Scalper indicator:

  1. You may open a trade when the price crosses the entry level (for example if BUY appears, you could wait until the price crosses the entry level upward).
  2. You may want to recognize the overall trend and you could sell only in a decline and buy only in an uptrend.

The JJN Scalper Indicator works with all periods (5 minute chart or higher) and currency pairs. It is presented directly on the main trade chart. The input tab allows you to change the default parameters directly. Feel free to play around with the settings and parameters to suit your needs.

Buy Signal

The following could be your checklist for a buy trade:

  • When the indicator displays a “BUY” signal.
  • When price crosses above the entry level displayed by the indicator.

Once these events occur:

  • You could open a buy position after you confirm your entry with bullish candlestick patterns.
  • You could set your stop loss just below the nearest swing low or at the stop loss level displayed by the indicator.
  • You could set your take profit at the nearest resistance zone or at the take profit level displayed by the indicator, or you could exit trade when the indicator displays a “SELL” signal.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
JJN Scalper ATR Buy Setup
JJN Scalper ATR Buy Setup

Sell Signal

The following could be your checklist for a sell trade:

  • When the indicator displays a “SELL” signal.
  • When price crosses below the entry level displayed by the indicator.

Once these events occur:

  • You could open a sell position after you confirm your entry with bearish candlestick patterns.
  • You could set your stop loss just above the nearest swing high or at the stop loss level displayed by the indicator.
  • You could set your take profit at the nearest support zone or at the take profit level displayed by the indicator, or you could exit trade when the indicator displays a “BUY” signal.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
JJN Scalper ATR Sell Setup
JJN Scalper ATR Sell Setup

JJN Scalper ATR Pros & Cons

Pros

  • The JJN Scalper ATR Indicator gives traders entry, exit, and stop loss levels.
  • This indicator may be beneficial for newbie traders and could be used as an additional confirmation tool for other trading strategies.

Cons

  • The JJN Scalper ATR Indicator may not be very suitable for riding long trends.
  • This indicator may generate false signals in some cases with respect to the entry levels.

Conclusion

JJN Scalper ATR may be beneficial for startup traders due to its ease of use. It is chart-friendly and also suggests entry levels, stop loss levels, and take profit levels for the traders. Nonetheless, the traders ought to keep in mind the importance of having realistic expectations. JJN Scalper ATR Indicator occasionally generates false signals.

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