What Is ATR (Average True Range)?
A volatility measure used to scale stops and position size.
ATR (Average True Range) measures how far price typically moves per bar—traders use it to scale stop distance and position size to current volatility.
ATR for stops, not direction
ATR does not say up or down; it says how noisy the tape is. True range includes gaps between bars—why ATR jumps after limit-up style moves on indices. A common desk habit: place stops at 1.0–1.5× ATR from entry on your trading timeframe, then size so dollar risk stays fixed. A volatility measure used to scale stops and position size. Chart language must convert to a pass/fail checklist line; ATR (Average True Range) is useful only when it changes entry, skip, or size. On TraderBots-style workflows, manual execution remains the default: Discord delivers context, you deliver discipline. Review monthly whether trades tagged with atr (average true range) improved expectancy in R after spread; demote the tag if not. During drawdown, tighten how atr (average true range) gates new alerts instead of increasing size to recover faster—recovery math punishes oversize rebounds. When SwitchPro charts disagree with a VIP screenshot, reconcile symbols and sessions before blaming the alert. Keep a single journal column for atr (average true range) so skipped trades are scored alongside winners—skips often reveal filters that work.
Multi-timeframe ATR
Daily ATR contextualizes intraday alert stops; M15 ATR suits scalp timing. SwitchPro and TradingView plot ATR easily—compare alert invalidation distance to ATR before entry.
Limitations
ATR lags; vol can expand instantly on news. ATR is a guide, not armor. On CPI, widen mentally even if yesterday's ATR looked small.
Journal
Tag trades where stop was inside 0.5× ATR vs outside 2× ATR—see which bucket matches your alert sources.
ATR percentile
Track ATR percentile weekly—alerts tuned in low vol need size change in high vol even if stops look similar in pips.
ATR stop walk-forward
Test 1.0 versus 1.5 ATR stops on last hundred alert trades in journal replay.
Symbol table
Maintain ATR multiples per symbol that worked in journal—starting points, not gospel.
FAQ
What ATR period is standard?+
14 is common; consistency matters more than the exact number.
Do TraderBots alerts cite ATR?+
Some agents reference vol; you should still verify on your chart.
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