Here is an option chart of NIFTY 50 24 july 2025 strike price 25050. NIFTY50 spot price 25111. ATR calculates based on your input period. simple method i used is that if my Input ATR < Current ATR value. than i take a risk/Stoploss of that value in particular time frame. If ATR has high volatility meaning high profit.
This is a standard H&S pattern. volume is yet to confirm in my view. if R1 and R2 zone made a breakout than we expect for bullish run as chart pattern suggests.
So idea here is to calculate risk. understanding fear in the market ATR is an indication of volatility , not direction. A smaller ATR range means low volatility.. tentatively market is consolidating. A larger ATR range means the market is dealing with uncertainty so volatility has increased. you can see the value of ATR on your chart. the value of past...