Nilesh's ATR Strategy

The following strategy was contributed by Mr.Nilesh Deshpande from Just Nifty Blog.

The strategy is as follows,

PC-ATR*.80 to PC-ATR*0.50 Buy Zone

PC+ATR*0.50 to PC+ATR*0.80 Sell Zone

where PC is previous day's close.

Bears get weak near PC-ATR*0.50 to PC-ATR*0.75, but get charged up below PC-ATR*0.80 for a target of DH-1.5*ATR

Bulls get weak near PC+ATR*0.50 to PC+ATR*0.75, but get charged up above PC+ATR*0.80 for a target of DL+1.5ATR

where DH & DL are current days High & Low respectively.

Gives out better results when used with ADX for determining whether this is a trending or a sideways market.

Thanks