ATR targets and trails: how do you use volatility in your plan?

Using ATR to set stops is common; using it for targets and trailing is rarer and often better. A 2× ATR move is a meaningful day on any pair, whatever the pip count.

ATR targets and trails: how do you use volatility in your plan? — pip movement diagram
How a pip moves the exchange rate

How do you use ATR?

  • the period and time frame you read it from
  • whether targets scale with ATR or stay fixed
  • how you trail a position using volatility instead of pips
ATR targets and trails: how do you use volatility in your plan? — support and resistance diagram
Price bouncing between support and resistance

The ATR guide has the worked examples.

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