Explain the contents and logic of the disguise version ABUATR! Also the way of thinking and how to use it

What is ABUATR in the first place?

I want to know more about the contents of ABUATR!

As I progressed with setup and verification, my understanding deepened, soI’ll summarize it here for my own reference as well.

※This article has been authorized for publication by Abusan

There are switchable settings in the De-swing ABUATR version

In the De-swing ABUATR version,there are configurable items that can be switched according to discretion.

With the default settings,

• ABUATR2
• ABUATR3
• ABUATR4

and so on,multiple TPSL targets are displayed simultaneously.

Among them,personally I find it easiest to treat ABUATR2 as the baseline.

What is ABUATR in the first place?

What underlies it is “ATR”

The base for ABUATR is the indicator that is also standard in MT4ATR (Average True Range).

ATR measuresmarket volatility (magnitude of price movement) and is displayed as a line chart-like shape.

If ATR is high, volatility is high; if ATR is low, volatility is low.

What the default ATR "14" signifies

ATR is generallya 14-period used.

This means

based on the past 14 candles
how much, on average, did it move per candle?

In other words, looking at ATR provides

• whether the recent market is moving a lot
• or moving little
• how much price range to expect next

as a basis for judgment.

ABUATR is “TPSL mapped from ATR”

ABUATR

Using the idea of ATR
visualizes TPSL according to volatility

and is very easy to understand.

When you actually look at the chart,

• ABUATR1x ≒ Original ATR’s pip value

moves quite close to it.

Looking at it, the original ATR (with a setting around 14) is 18 pips, and ABUATR1x is close to 17.1 pips.

I don’t know the exact numerical settings of ATR, but in testingATR 14~17 settings ≒ ABUATR1xseem to be the case.

Why are ATR 2x–3x used?

In the market world, the common thinking is

• ATR1x →prone to being taken by noise
• ATR2x–3x →more resistant to noise

Thus, the idea is to keep some margin, so 2–3x are often used.

ABUATR as a measure for stop loss and take profit

In discretionary trading,using ABUATR as a guideline for stop loss and take profit,

• Basic:ABUATR2x–3x
• Personal first choice:ABUATR2x

seems right to me.

Why ABUATR2x is easier to use? [Personal view]

The current mainstream trading style is

a range from line rebounds to near the dot

for profit targets.

Many people use line touch entries in Prime Combo Signals.

Rather than aiming for a large profit from dot to dot, they aim for half that profit.

To be slightly extreme, as a method of aiming for profits with the Heaven and Earth indicators, there are

• dot–dot
• line–dot
• dot–line

three patterns.

In DSATEA 1-hour trades and Prime Combo Signals, the pattern ② is often used.

In this case,

• 3x is a bit too wide
• 1x is prone to being hunted

and there are many such situations,2x has the best balancein my view.

Even in Prime Combo Signals, “2x” seems common

When looking at Prime Combo Signal’s exit settings,many people are using ABUATR2ximpression.

This is because the balance of

• win rate
• profit range
• stability

is easier to achieve.

Many people use ABUATR2 for stop loss and dot1 for take profit.

Summary

• The De-swing ABUATR version has multiple display settings
• Based on ATR (volatility indicator)
• ABUATR1x is roughly equivalent to the ATR’s range
• In real operationABUATR2x–3xis practical
• If focusing on line rebounds and trend-following,2x is especially easy to use

That’s all.