ATR (Average True Range)

Updated 2026-09-20

Definition

An indicator that measures the average volatility of candles, in pips or points, usually over 14 periods.

Why it matters

It gives no direction but the size of moves: it helps choose the stop (for example 1.5-2 times the ATR), compare instruments and filter still-market moments.

Practical example

H1 ATR of 12 pips: an 18-pip stop (1.5 × ATR) sits outside ordinary noise.

Learn more

Course lesson: Technical indicators: moving averages, RSI, MACD, Bollinger and ATR

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Educational content, not financial advice. Trading involves risk.