ATR: The Pulse of Market Movement
- The Breakdown: ATR measures market volatility by looking at the average range of price movement over a specific period. It doesn’t show direction, only “energy.”
- Why Traders Love It: It’s the gold standard for setting stop-losses. It tells you how much a stock “breathes” so you don’t get stopped out by noise.
- Pro-Tips for Success: Use a “2x ATR” multiplier for your stop-loss. It gives your trade enough room to move while protecting your capital.
- Link: ATR Standard