How to calculate profit level with ATR??

[VingTsunKuen]

Hello!

I would like to know how to calculate profit levels with ATR.
Also how we can calculate average range for past X period??
Thanx in advance!
Cheers,
VTK

 

[Adamus]

I've not heard of a specific profit statistic related to ATR but I guess it would be quite useful to see your profit on a market as a multiple of ATR. Or rather, a fraction.

Average range = total (high - low) for X days / X

Average true range: as above but replace (high - low) with Max(high, yesterday's close) - Min(low, yesterday's close)