A Key Trading Factor To Watch For A Further Market Breakdown

Allison Ostrander, Director of Risk Tolerance and Options Trader Specialist at Simpler Trading shares why she is watching the S&P monthly chart. More specifically the ATR (Average True Range) trailing stop is a key level to watch because if it is broken then a much more major selloff would happen immediately. Take a look at the chart below when listening to the interview.

Allison Ostrander on the S&P monthly chart

Click here to visit the Simpler Trading website and follow along with Allison.

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Comments:
  1. On January 8, 2019 at 1:27 pm,
    john davis says:

    What are settings for the ATR Trailing stop on her chart? I have mine set at 10 days and 2.5 range on the monthly chart and on my chart the ES has already broken down through the ATR Trailing stop.

    I think the default setting is often 10 and 3.0 but I like mine with a little less range.

  2. On January 8, 2019 at 2:53 pm,
    CFS says:

    https://www.marketwatch.com/story/stock-market-investors-its-time-to-hear-the-ugly-truth-2019-01-05?fbclid=IwAR1Ocx-bUMSeAlOrXEkoAs3DkhUVlHg_NRd_I-EsDGIAD4MKAzcrVG92PAo