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ATR (Average True Range)

Indicators

A volatility indicator that measures the average range of price movement over a specified period, accounting for gaps. Commonly used for setting stop-loss distances that adapt to a stock's volatility.

Related Terms

Volatility

The degree of variation in a security's price over time.

Bollinger Bands

A volatility indicator consisting of a 20-period SMA with upper and lower bands at 2 standard deviations.

Stop-Loss

An order to exit a position when the price moves against you to a predetermined level.

Learn More

Bollinger Bands: Volatility Mapping

Level 3: Technical Toolkit · 18 min

Stop-Loss Strategies

Level 4: Risk & Money Management · 22 min