05 September Chart Decoder Series: Average True Range – Volatility Tools to Help You Select Your Target and Get Profit

Welcome to Chart decoder seriesconvert professional trading tools into strategies you can use today.

So far, we’ve been working on:

Today we explore ATR (average true range). This is an indicator that solves one of the biggest puzzles in a transaction. What risk is there and where should the stops be placed?

What ATR really says to you

The ATR was developed by J. Welles Wilder Jr. in 1978 as part of a groundbreaking work on technical analysis. Unlike most metrics focusing on price direction, ATR measures only one thing. It’s volatility.

The ATR answers an important question: “How long does this market normally move?”

Calculation: The ATR examines the “true range” of each period. This is the largest.

1. Current high – Low current
2. |Current High – Previous Closed|
3. |Current Low – Previous Closed|

Next, move the average of these true range values ​​over the selected period (14 is the standard for Bitfinex, but you can adjust it to any time you like)

Absolute values ​​ensure that the ATR always shows a positive number, regardless of whether the gap is up or down.

Why is ATR important:

ATR is beyond context. It forms the way traders manage risk, size locations and set exits. Rather than relying solely on intestinal sensation, it provides an objective measure of market behavior that directly informs all transactional decisions.

1. Smarter stop loss

Placement of stops without an ATR is basically guesswork. The ATR indicates what is considered “normal” movement and cannot be thrown away in your daily swing.

• Scalping Stop (0.5 x ATR): Used by high frequency traders who want a quick ex with the first sign of trouble. Effective only during low volatility periods where market movements are predictable
• Standard stop (1 x ATR): Provides ample space for normal price fluctuations while maintaining reasonable risk management
• Stop position (2xATR): For traders who hold a position for several days that needs to survive the normal daily volatility cycle without a premature exit

2. Size your position appropriately

Professional risk management is the maintenance of consistent risk exposure regardless of market conditions. Instead of trading the same size in all conditions, adapt smaller positions when the volatility is high, and adapt larger positions when it’s mild.

3. Volatility breakout spots

Breakouts with expanded ATRs demonstrate institutional participation and true directional beliefs. If price breaks a critical level but the ATR remains flat, it often indicates weak follow-through and a high probability of inversion. The most powerful setup occurs when the price breaks a critical level with an ATR expansion, checking both direction and momentum.

4. Set profit targets

ATR multiple provides a reasonable framework for setting realistic profit targets and helps you move away from guessing towards consistency.

• Conservatives: 1.5 x ATR
• Standard: 2 x ATR
• Aggressive: 3xATR

Actual example: BTC/USD analysis

price: $110,500
ATR (14): 3,033

This tells us:

Bitcoin’s recent average daily exercise is about $3,033. This gives traders a clear context.

• The $3,000 move is no exception. Matches 1xATR
• Approx. 3,000 (1 x ATR) stops losses about normal breathing patio
• A profit target of $4,500-6,000 (1.5-2xATR) is realistic for swing trading
• ATR at this level shows a moderately volatile market that requires careful position sizing and risk management.

ATR + Other Indicators:

When combined with other tools, the ATR becomes even more powerful.

ATR + Bollinger Band: This move is more certain when you hit the extreme Bollinger band with a high-priced ATR. A low ATR in the band may suggest that extremes are not retained.

ATR + RSI: Excessive conditions for RSI with elevated ATR often mark important bases. High volatility shows true sales pressure, and it sells too much and makes the reading more meaningful.

ATR + MACD: MACD crossovers with an ATR expansion are more reliable than those contracted by ATR. Volatility confirms that there is a conviction for a change in momentum.

ATR + Volume + obv: Triple combination: obv points to the direction of smart marten, volume points to immediate conviction, and ATR shows how much to expect. If there is all alignment, there is a high paraability setup.

Bonus Read: ATR + RSI Behavior

price: $110,600
ATR (14): 3,033
RSI (14): 39.12 (nearly excessive)

This tells us:

• The RSI of 39 is below neutral (50), but has surpassed the 30 overselling threshold, still showing bearish momentum rather than extreme.
• ATR of 3,033 indicates an increase in daily volatility. This means that the swing is big.

For traders:

• Bearish rsi + high atr = Sales pressure is active and backed by volatility.
• If RSI approaches 30 while the ATR is high, the market is not just going down, but is being sold by force. Overselling conditions will carry more weight.
• If the RSI begins to climb while the ATR remains high, the bounce may have some strength behind it rather than simply a weak recovery.

ATR limitations to remember:

Delay indicator
The ATR is based on past price transfers. It tells us what volatility is, not necessarily what it is.

There is no direction bias
ATRs don’t tell you what direction the market will move. It’s just a typical amount of movement.

Smoothed data
Like all moving averages, ATRs can be slower to respond to sudden changes in volatility.

Market context is important
ATRs in trending markets behave differently than horizontal markets. Always consider the larger picture.

Pro tips for ATR:

1. Use multiple time frames

• Daily ATR: For swing trading and position sizing
• 4-hour ATR: For day trading setup
• 1 hour ATR: For accurate input timing

2. Economic calendar integration

ATRs often spike major news events. Plan position sizing and stop placement accordingly.

3. Weekend benefits

Crypto Markets is open 24/7, but volatility patterns often change over the weekend. Consider individual ATR calculations for weekday and weekends.

Try it with Bitfinex:

1. Log in to Bitfinex
2. Choose your main trading pair
3. Add an ATR indicator (starts with the standard 14 periods. The length can be adjusted within the ATR settings)
4. Observe how ATR changes in different market conditions
5. Practice using ATR for stop loss placement
6. Note the correlation between ATR and key price movements

Bitfinex. Original Bitcoin exchange.

]]> https://earlybirdsinvest.com/chart-decoder-series-average-true-range-volatility-tools-to-help-you-select-your-target-and-get-profit/feed/ 0 57289 https://earlybirdsinvest.com/openai-taps-gpt%e2%80%915-for-distress-chats-adds-parental-tools/ https://earlybirdsinvest.com/openai-taps-gpt%e2%80%915-for-distress-chats-adds-parental-tools/#respond Thu, 04 Sep 2025 05:19:34 +0000 https://earlybirdsinvest.com/openai-taps-gpt%e2%80%915-for-distress-chats-adds-parental-tools/

OpenAI is making changes to how ChatGPT handles sensitive conversations, including the introduction of parental controls and smarter model routing.

The updates follow recent incidents that raised concerns about ChatGPT’s ability to respond safely when users show signs of distress.

OpenAI has acknowledged that its safety features are not always effective, especially during long chats. A common issue is that ChatGPT tends to agree with whatever users say, rather than redirecting them away from dangerous ideas.

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To help prevent future incidents, OpenAI plans to begin automatically switching to more advanced models, such as GPT‑5 Thinking, when signs of distress are detected. This decision will be made by a new real-time system that selects the appropriate model based on the user’s topic of discussion.

The GPT-5 Thinking and o3 models are designed to analyze conversations more deeply before responding, which makes them more careful and less likely to react poorly to risky or harmful prompts.

OpenAI is also rolling out new features for parents and guardians. Families will be able to connect a parent account to a teen’s profile. This will enable parents to customize how ChatGPT interacts with younger users.

Default settings will include filters that ensure responses are suited to a younger audience. There will also be options to turn off memory and chat history.

Recently, OpenAI CEO Sam Altman admitted that the release of GPT-5 did not go as planned. Why? Read the full story.

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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Navigating the crypto landscape can be challenging, especially for beginners.

However, the rise of artificial intelligence – now more mature after numerous trials and tribulations – has been a godsend for both novices and experienced traders alike.

Trading bots like Coinrule and 3Commas, for example, can execute orders instantly, free from the emotional decision-making that often trips up human traders.

Meanwhile, platforms like Incite AI can generate actionable insights by analyzing and interpreting data from multiple sources, including news publications, real-time exchange data, and social media buzz, giving you a clearer view of overall market direction.

To fully harness the power of AI and use it to strengthen your crypto portfolio, we asked Grok about the best cryptos to buy now.

Read on as we unpack AI’s role in crypto, how it’s outperforming human analysts, and Grok’s top investment picks.

Why AI’s Real-Time Insights Are a Game-Changer for Altcoin Picks

According to a recent report, AI is better at suggesting diversified portfolios to manage market volatility.

For example, AI tools recommended a mix of large-cap coins like Bitcoin and Ethereum, mid-cap cryptos such as Solana and Cardano, and stablecoins to avoid concentration risk.

The best part? This portfolio outperformed those not diversified by AI by a whopping 15%.

Similarly, crypto hedge funds that leverage AI analysis delivered an average return of 48% – 12-15% higher than traditional approaches.

Crypto markets are highly dynamic. By the time you make sense of one data set, another one appears. This is where quantitative models like multi-criteria decision-making (MCDM) prove invaluable.

AI models like Grok can analyze interconnected factors such as technological, financial, and geopolitical risks in the crypto markets in real time.

And speaking of Grok, it’s worth highlighting its direct integration with X, which gives it instant access to all the latest crypto-related updates, from tweets by prominent voices to company announcements and analyst chart posts.

This not only saves you a huge amount of legwork, but also provides access to highly niche data that would otherwise take days to surface manually.

Want in? Here are the 3 top altcoins Grok is watching right now.

1. Snorter Token ($SNORT) – New Telegram Trading Bot Swiping Meme Coin Liquidity

Snorter Token ($SNORT) is the official cryptocurrency of the Snorter Telegram trading bot, designed to simplify meme coin investing for small traders.

Until now, large institutions have typically swiped away all the liquidity in new meme coins using advanced algorithms and sophisticated tools.

The Snorter bot changes that by allowing you to place buy/sell limit and stop orders directly through its slick Telegram interface.

Next, it automatically executes those orders at lightning speed the moment liquidity becomes available in a token, putting you on par with whales.

One of the bot’s biggest strengths is its robust security infrastructure.

Buying $SNORT unlocks exclusive perks such as advanced market analysis, no daily sniping limits, and reduced trading fees – just 0.85% compared to 1.5% for non-holders.

Currently in presale, Snorter Token has already raised over $3.63M, with each token currently priced at $0.1031.

And according to our $SNORT price prediction, the token could surge to $0.94 in 2025 alone – delivering mind-melting gains of nearly 800%.

Visit Snorter Token’s official website for more information.

2. SUBBD Token ($SUBBD) – First-Ever Crypto Content Platform Offering Tons of AI Tools

SUBBD Token ($SUBBD) is the native token of the SUBBD platform, which aims to transform the $85B content creation industry.

Right now, mainstream platforms charge as much as 70% of creators’ revenues as platform fees, leaving them with almost nothing. SUBBD, on the other hand, takes only a fraction of earnings as fees.

Beyond fairer revenue sharing, the platform also adds utility by offering AI-powered tools, including video, text, image, and audio generators.

So, creators can spend less time managing content and more time engaging with their audiences to build meaningful connections.

Buying $SUBBD also brings a lot of benefits for viewers. You can unlock exclusive creator content, request custom content, and even tip your favorite creators using the token.

And, of course, the ROI potential is massive, too. According to our $SUBBD price prediction, a $100 investment today could grow to $500 by year’s end.

The $SUBBD presale has already raised $1.08M, with each token currently priced at just $0.056325.

Check out SUBBD Token’s official website for more information.

3. Ethereum ($ETH) – OG Cryptocurrency Drying up Exchange Reserves

Ethereum ($ETH) has been buzzing over the past few weeks. The token teased the $5K mark on August 24 and has been consolidating since then.

Overall, Ethereum has surged by more than 75% since the beginning of July, steadily building strong bullish momentum.

As per reports and on-chain data, several $BTC whales are now quietly building long positions in $ETH. For example, one crypto whale sold more than 2,000 $BTC and bought 886,371 $ETH worth over $4B.

Meanwhile, the World Liberty Financial token ($WLFI), a Trump-backed crypto investment company, is also set to make its exchange debut on Monday.

Interestingly, $ETH makes up more than 66% of WLFI’s total holdings, amounting to $328.20M.

Data from CryptoQuant shows that $ETH exchange reserves are dipping fast and are now at record lows.

This signals that institutions, whales, and even retailers are stacking up on $ETH, creating strong buying pressure and a bullish backdrop that could push Ethereum to new highs.

Ethereum looks promising on the technical front, too. It’s moving in a bullish channel with key resistance only around the $4,900 level.

Once $ETH crosses the psychological $5K threshold, experts believe we could see it soar to $7,500 or more by year-end.

Final Thoughts

Using AI for crypto analysis, trading, and portfolio building can be a game changer, as these models can identify potential multibaggers early in their life cycle, before the crowd catches on.

And this isn’t just speculation. We tested Grok hands-on, and it delivered a solid mix of low-cap and established tokens for a well-balanced portfolio.

Grok’s top 3 suggestions include Snorter Token ($SNORT), SUBBD Token ($SUBBD), and Ethereum ($ETH).

That said, investing in cryptocurrencies comes with inherent market risks. This isn’t financial advice, so always do your own research before investing any money.

Authored by Krishi Chowdhary, Bitcoinist — www.bitcoinist.com/best-crypto-to-buy-now-grok-how-ai-tools-deliver-better-returns

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

A growing majority of Gen Z crypto traders are turning to artificial intelligence (AI) to guide their strategies and it’s making them less prone to panic selling.

According to a July 24 report from MEXC Research, which analyzed over 780,000 Gen Z trading accounts in the second quarter, found that 67% of users aged 18 to 27 had deployed at least one AI-powered bot or strategy in the past 90 days.

Traders using AI-driven tools recorded 47% fewer panic-sell incidents during periods of market stress compared to those trading manually.

A tactical ‘on–off’ relationship

Gen Z’s engagement with AI isn’t passive. The cohort averaged 11.4 days per month using AI tools, which is more than double users over 30. Furthermore, they accounted for 60% of all AI bot activations on the exchange. 

Yet, they don’t leave bots running indefinitely, as 73% switched them on during volatility or news spikes and turned them off during low-volume, sideways markets. Overall, 58% of Gen Z AI interactions occurred during periods of elevated readings on MEXC’s internal volatility index.

This behavior points to fluid control rather than full delegation. Gen Z configures conditions and lets automation execute when emotions are most likely to interfere. They also check AI-generated signals 2.4 times more often than traditional indicators, suggesting they view machine output as the primary decision feed in fast markets.=

Generational differences

MEXC’s data indicates that AI is serving as both a risk-management layer and a convenience feature. Gen Z traders using bots were 1.9x less likely to trade reactively in the first three minutes of major events, a window that MEXC flags as prone to costly errors.

They were also 2.4x more likely to employ structured stop-loss and take-profit rules, reinforcing that automation is being used to maintain absolute boundaries, not just identify entries.

Cross-generational comparisons reveal that millennials continue to lean toward thesis-driven, chart- and report-heavy workflows, treating AI as a supplement to pre-set strategies. 

Only 22% of millennials and 7% of Gen X reported turning to AI during high-volatility windows, versus Gen Z’s 73%.

Psychologically, millennials seek a sense of persistent manual control. Gen Z toggles autonomy based on stress, noise, and attention bandwidth, a pattern mirroring those seen in gaming and social platforms.

MEXC projects that by 2028, more than 80% of Gen Z traders will rely on AI for full-cycle portfolio management, from dynamic rebalancing to tax automation. 

That demand aligns with broader forecasts, putting the AI trading platform market at nearly $70 billion by 2034, growing over 20% CAGR from 2025 to 2034.

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Binance founder and former CEO Changpeng Zhao has urged national governments to explore the use of artificial intelligence tools, particularly large language models (LLMs), to simplify their legal systems.

In a July 10 post on X, Zhao argued that AI could play a key role in making legal codes more understandable and accessible to everyday citizens.

According to him, many countries have accumulated layers of complex, conflicting laws over time that legal professionals often shape through patchwork amendments.

Due to this, the current legal systems have become “gigantic, patched, added, and often intentionally made complex.”

Zhao pointed out that this has made it nearly impossible for non-lawyers to fully comprehend their rights and obligations.

However, he believes that this could change with the advent of LLMs.

Large language models are advanced AI systems like OpenAI’s ChatGPT that could be trained on extensive legal text. This would allow these tools to read, analyze, and rewrite dense legal documents into simplified formats.

As a result, these AIs could detect inconsistencies, streamline clauses, and interpret technical language, which could help make the law more accessible to everyday users.

AI won’t replace lawyers

Despite his enthusiasm, Zhao clarified that AI should not be seen as a substitute for human lawyers.

Instead, he positioned these technologies as assistants that could handle routine tasks while freeing up legal professionals to focus on more complex, high-stakes work.

According to him:

“There could be a 1000 companies building spaceships vs only a couple now. We can test more drugs to cure cancer. Flying cars… All of them need tremendous amounts of legal work.”

Meanwhile, market observers cautioned that while LLMs offer tremendous utility, they have flaws.

Current iterations still face challenges such as hallucinations or situations when the AI generates incorrect or misleading information. They argued that this reinforces the continued need for legal professionals who can interpret, verify, and contextualize the law.

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