Set Stop loss using ATR indicator ( Step by step guide)

ATR blog - tradelogical.com/atr-stop-loss/

#ATRindicator #ATR #stoploss

Set Stop loss using ATR indicator (Step by step guide)

Link to the ATR blog - http://tradelogical.com/atr-stop-loss/

#ATRindicator #stoploss #tradelogical

The formula for Stop Loss using ATR value
To BUY “Current price – ATR value = Stop loss”
For SELL “Current price + ATR value = Stop loss”

What is ATR or Average True Range indicator?
ATR indicator (Average True Range Indicator) is a volatility indicator. The indicator only provides the degree of price volatility, It does not indicate the direction of the trend.


Price volatility is what we need to set stop loss, we will learn how to use ATR indicator to set stop loss and trail stop loss.

PRO TIP: During Intraday trading look for stocks which have ATR more than 1, This will help in selecting volatile stocks.

Note: You can round off the ATR value to the nearest multiple of 5 , this will help easy execution as many traders keep similar buy/sell values.
If ATR value is 1.4 you can round off to 1.5

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