It's very important to know your level of actions, to know what is the price range that a target can fits in.
In this example, if you look on the left chart, we had upst that was going up at the open of the market. Its ATR was around 18. It opens around 152.......but but but.... look on the right daily chart >>>> THERE WAS NO WAY THIS THING WAS GOING HIGHER THAN 164$.
So while analyzing a stock before the open, you need to know what is the next level of price, so you know if your target (within the atr) can fit inside or not ....so you don't keep chasing the moon for nothing :)
In this example, if you look on the left chart, we had upst that was going up at the open of the market. Its ATR was around 18. It opens around 152.......but but but.... look on the right daily chart >>>> THERE WAS NO WAY THIS THING WAS GOING HIGHER THAN 164$.
So while analyzing a stock before the open, you need to know what is the next level of price, so you know if your target (within the atr) can fit inside or not ....so you don't keep chasing the moon for nothing :)