Dow Jones Weekly ATR Estimations

Going through the weekly chart for the averages of how far Dow Jones can move in a week.

The last 84 weeks averaged out to 937 ticks. This lines up with the medium sized candles.

There are three types of weekly candles

1. Small Doji candle (28 occurrences)

2. Medium sized candle (47 occurrences)

3. Large expansion candle (9 occurrences)

This small set of data sampled tells me that the vast majority of weekly candles have a medium sized move between 700-1200 ticks with the average of all 84 weeks being 937 ticks.

Large sized expansion candles are rare with only 9 weekly candles exceeding 1400+ ticks

Small doji style candles are also fairly common with 28 weeks being between 350-550 ticks


Now that I know this information, the question is how to use it effectively in Live Time.

Comment:

The average move on each trading day is between 200-500 ticks.

There are days that are exceeding that by being 600-1000 ticks but those are rare.

What happens ON AVERAGE is about 350-450 ticks

This data set tells me that when daytrading, going for the average sized move is the best course. A steady 2:1 risk reward is the way to go.

Comment:

Comment:

Last week price movement was only 787 ticks from high to low. This was about an average, medium sized weekly candle.

Monday through Friday moved about 200-350 ticks each day, an average amount of movement.

Of course there was CPI on that Wednesday that moved over 400 something ticks.