Another way to use ATR for Profit Taking

[RussWilliamL 21]

One of the problems I've found with using ATR to plan my Profitable Exits, is that the ATR number incorporates overnight gaps for the calculation. 

When day trading, I prefer to look at the actual range during the day from the LOD to HOD, ignoring the overnight gaps.  This tends to smooth out the apparent volatility.  My preferred number of days to average is five.

I have a spreadsheet I use to calculate this ATR(5), the projected High and Low for the Day, and a Projected Percent of those expected Highs and Lows.  It is a spreadsheet I found online for downloading Data from Yahoo Finance that I added calculations to.  My Downloadable Spreadsheet can be found HERE.

 

HERE'S HOW IT WORKS

In the First Tab of the Workbook, I input the symbols I want to screen and/or trade. and input the Period I'm looking at.  (to get the 5-day range that I've got the Spreadsheet set up at, the "End Date" is "today", and the "Beginning Date" is the first date of the last five trading days.)  (BLUE FIELDS ARE THE ONLY FIELDS FOR INPUT) Then, I click the button that gets the data. 

 

On the second Tab of the Workbook, the Downloaded Data is compiled into a nice little table that shows the Average ATR (from the Highs and Lows) of the last five days.  The table also has a column that shows the percentage of the ATR(5) compared to the previous day's close.  This Percentage is helpful to see which stock is likely to provide the most ROI.

 

The third Tab of the Workbook is where the calculations are done during trading.  (BLUE FIELDS ARE THE ONLY FIELDS FOR INPUT, THE REST ARE CALCULATIONS)  In this Tab, I input my Target Percentage which is where I plan on taking profit based on a certain amount of movement toward the Projected Highs and Lows as calculated by the ATR(5).  (FYI, I don't use 80%, I just put that in there as an example) As I am trading the stock throughout the day, I input the High of Day and Low of Day in the other Blue Fields.  To the right, this Tab calculates projected Highs, Lows, and a Percentage of that based on the Target Percentage input at the top.  (it is usually easiest to put the stock(s) you plan on trading at the top of the list on the Symbol Entry Tab so that they will be at the top of this list)

 

 

Feel free to DOWNLOAD MY SPREADSHEET HERE.

 

Best,

Russell Landwehr

Edited June 4, 2023 by RussWilliamL

[mwahidullahbbt 0]

Hi Russell, 

I am new and this is a great spreadsheet. But when I click get data from yahoo, I am getting an error. See the screenshot. Appreciate you feedback. Thank you. 

[peterB 327]

u do not need to do it so complicated anymore - https://traderpeter.substack.com/p/das-trader-advanced-hotkeys-part-c83