What is ATR?Average True Range
Average true range: the average size of each candle's move, regardless of direction.
Learn “ATR” in an animated lesson
- Risk Management & Trading PsychologyWhere to Put Your Stop: ATR and Structure Stops
A stop that's too close gets swept by everyday noise; too far and your position gets tiny. Place the stop by volatility (ATR) or chart structure, then use position size to fix the risk at 1%.
- Indicators in Practice & BacktestingIndicator Confluence
Any single indicator is often wrong. When trend, momentum and volume all point the same way, the signal tends to be more reliable, but rarer.
- Indicators in Practice & BacktestingExit Rules: Trading Win Rate Against Payoff
Same entry, different exits (fixed take-profit, trailing stop, time stop): how do win rate, payoff ratio and expectancy change?
- Indicators in Practice & BacktestingPosition Sizing and ATR Stops
Even the best signals lose sometimes. Deciding how much to lose per trade matters more than finding the perfect signal.
- Volume & Volatility IndicatorsAverage True Range (ATR)
How much does a candle move on average? ATR doesn't judge direction, only volatility, and it's most often used to set stops.
- Volume & Volatility IndicatorsDonchian and Keltner Channels
One uses the highest high and lowest low, the other uses ATR: two channels, two kinds of breakout logic.
Related terms
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