By combining the five-day average true range with simple three-day moving averages of the highs and lows, you can create the 3x5ATR indicator to find support and resistance areas that can be used in a day-trading strategy of buying on dips and selling on rallies. The S&P charts above and the above, left T-bond chart show examples of support lines using the 3x5ATR; the above, right T-bond chart illustrates a resistance line using the 3x5ATR.

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