WickCheck / Trading school / ATR
ATRAverage True RangeIntermediate
The average size of recent candles, including gaps. A volatility measure.
What it means
ATR is mostly used for stops and position size: a stop of 1.5 × ATR adapts to quiet and wild markets. It says nothing about direction.
How to spot it
- ATR(14) on your trading timeframe.
Common mistakes
- Using a fixed pip stop in markets whose volatility changes a lot.
Related terms
Stop lossThe price where a losing trade is closed to cap the loss at a planned amount.…Position sizingChoosing the trade size so a stop-out costs a fixed amount, usually a small % of…Bollinger bandsA moving average with bands two standard deviations above and below it.…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.