But markets do not always move symmetrically.
An instrument may rise gradually for hours and then decline sharply during a risk-off event. In other conditions, upside moves may develop faster and cover a larger range than downside moves.
This is why a single volatility figure may not always describe the market completely.
Why Markets Can Be Asymmetric
On a chart, the same distance up and down looks perfectly symmetrical.
Actual price behavior can be very different.
A market may spend several hours moving higher step by step and then cover a similar distance downward in only a few candles. The range may look comparable, but the speed and structure of the movement are different.
Several factors can contribute to this asymmetry, including news, liquidity, trading session, market risk sentiment and the characteristics of a specific financial instrument.
As a result, the statistical potential for an upward move may differ from the potential for a downward move.
What Are ATR Long and ATR Short?
The Average True Range (ATR) is commonly used to measure market volatility.
However, when analyzing a specific trading scenario, it can be useful to look at potential volatility separately by direction.
ATR Long can be used as a reference for potential upside movement.
ATR Short can be used as a reference for potential downside movement.
In Strifor Pivot ATR Target, this approach allows traders to examine potential volatility separately for Long and Short scenarios.
Instead of treating volatility as one universal number, the trader can consider possible directional asymmetry.
What Does This Change for a Trader?
Suppose a trader uses exactly the same Take Profit for both Long and Short positions.
At first glance, this seems logical: the same risk, the same target and the same trading rules.
But if an instrument historically covers a larger range during downward moves, a fixed target for both directions may not fully reflect its behavior.
This creates a useful question:
Does the same target really match the market's behavior in both directions?
This does not mean that Long and Short targets must always be different.
The point is to test the assumption using historical data.
ATR Long and ATR Short in a Trading System
Separating directional volatility can be useful when developing and testing a trading system.
A trader can compare:
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average upside range;
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average downside range;
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frequency of different target levels being reached;
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time required to reach a target;
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behavior during periods of high volatility.
A market may show little difference between Long and Short in quiet conditions, while the difference becomes much more visible during strong impulsive moves.
That observation can then be considered when adjusting a trading system.
A Practical Example
Imagine a trader analyzing an index and considering both Long and Short scenarios.
Strifor Pivot ATR Target shows one potential range for the Long scenario and another for the Short scenario.
Instead of automatically applying the same Take Profit, the trader can compare these values with nearby Pivot Levels and recent price behavior.
For example:
Long: Entry → ATR Long → nearest Pivot Level
Short: Entry → ATR Short → nearest Pivot Level
The trader can then evaluate how these targets fit the Risk/Reward structure and historical market behavior.
The indicator does not decide which trade to take. It provides another layer of information for the analysis.
Why Historical Data Matters
ATR Long and ATR Short are most useful when studied in the context of a specific market.
Historical analysis can help answer questions such as:
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Does the upside range regularly differ from the downside range?
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How often are different ATR Targets reached?
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Does the asymmetry become stronger during high-volatility periods?
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Does it change between trading sessions?
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Does the pattern remain visible across different time periods?
This helps distinguish a persistent market characteristic from a result caused by a small or unusual sample.
Start With One Market
There is no need to search for a perfect configuration immediately.
Choose one instrument and one timeframe.
Compare ATR Long, ATR Short, realized price ranges and the results of different target levels.
Then expand the research across additional periods and market conditions.
This approach is more practical than trying to create one universal setting for every instrument.
ATR Long and ATR Short Are Not Trading Signals
Directional volatility analysis does not predict the future direction of price.
ATR Long does not mean that the market must rise.
ATR Short does not mean that the market must fall.
These are analytical references that can help estimate potential movement while taking direction into account.
ATR Long and ATR Short in MetaTrader 5
For MetaTrader 5 users, this approach becomes easier when ATR Long, ATR Short and other analytical references are displayed directly on the chart.
Strifor Pivot ATR Target allows traders to examine potential upside and downside movement together with Pivot Levels and other market information.
This can be useful when planning Take Profit, evaluating Risk/Reward and developing a personal trading system.
Final Takeaway
Volatility is not always one universal number.
Markets can behave differently during upward and downward moves, and a separate view of ATR Long and ATR Short can help account for this possible asymmetry.
The goal is not to automatically make Long and Short strategies different.
The goal is to test whether the market really behaves symmetrically and use the results as part of your own trading system.
With Strifor Pivot ATR Target for MetaTrader 5, traders can add another analytical layer by comparing direction, volatility and key price levels.
