ATR Calculator

What Is ATR (Average True Range)?

ATR measures market volatility by averaging the true range over a set number of periods. It was developed by J. Welles Wilder and is one of the most widely used volatility indicators in trading. Unlike direction-based indicators, ATR only measures the magnitude of movement — not direction.

We compute ATR from close-to-close differences as a proxy for true range using live price data from our pipeline. The ATR % shows the value relative to current price — useful for comparing volatility across pairs.

ATR in Practice

Stop loss placement: Set your stop 1.5-2× ATR from entry. A pair with 0.0080 ATR should have a 0.0120-0.0160 stop. This gives trades enough room to avoid being stopped by normal noise.

Position sizing: Use the position size calculator with ATR-based stops. Volatile pairs (high ATR) need smaller positions to maintain the same dollar risk as stable pairs.

Volatility regime: Rising ATR means volatility is increasing — markets are becoming more active. Falling ATR means the market is settling. Adjust strategy aggressiveness accordingly.

Frequently Asked Questions

How do you calculate ATR?

ATR is the average of true ranges over N periods. We compute it from close-to-close differences from live close prices in our pipeline. Select a pair and timeframe — the calculator fetches and computes automatically.

What timeframe should I use for ATR?

Daily (1440) is standard for swing and position trading. Use 1h or 4h for intraday. Shorter timeframes (1m, 5m) produce noisy ATR values that fluctuate rapidly and are less reliable.

How do I use ATR for stop loss?

Place your stop 1.5-2× ATR from entry. If EUR/USD daily ATR is 0.0080, set your stop 0.0120-0.0160 away. This keeps the trade within normal volatility without getting stopped prematurely.

What is a good ATR period setting?

14 periods is the standard (Wilder's original). Shorter (7-10) reacts faster but is noisier. Longer (20-30) is smoother but slower. 14 works for most traders across all timeframes.