Oct 8 • GENERAL COMMUNITY CHAT
Quick, Bite-Sized Trading Wisdom to Level You up.
Quick, bite-sized trading wisdom to level you up.
📊 What is ATR? ATR stands for Average True Range. It’s a volatility indicator first introduced by J. Welles Wilder.
Instead of telling you direction (up or down), ATR measures how much price typically moves over a set period.
- A higher ATR = market is more volatile (bigger swings).
- A lower ATR = market is quieter (smaller swings).
Traders usually use ATR to:
- Size stop losses (so they adjust with volatility).
- Spot shifts in market conditions (when volatility suddenly expands).
- Build breakout systems (like mine) where entry levels adapt dynamically to current market movement.
In short: ATR doesn’t predict — it adapts. And that’s why it fits so well into robust strategies.
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Quick, Bite-Sized Trading Wisdom to Level You up.
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