Ethereum R1 is a new donation-funded, tokenless Layer 2 rollup designed to offer a decentralized, censorship-resistant, and governance-minimized scaling solution for Ethereum

The S&P 500 rose 0.63% Thursday, boosted by strong Meta and Microsoft earnings, but futures slipped Friday as investors awaited the April jobs report and weighed Apple and Amazon tariff concerns. Gold fell to $3,235 as easing trade tensions cut safe-haven demand; markets await US jobs data for rate cut signals. The Coindesk Indices, which tracks the broader crypto market, rose 2.19%, with Bitcoin and Ether up 2.57% and 2.60%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is AR, which gained 16.8% following CloneX's successful migration to Arweave, sponsored by ArDrive.

Arweave (AR), founded in 2017, is a decentralized network for permanent data storage, using blockweave and Proof of Access to ensure long-term accessibility. It offers 200-year storage for a one-time fee, incentivized by AR tokens for miners. The system connects blocks efficiently to preserve and retrieve data, aiming to create a lasting digital knowledge repository. CloneX has successfully 

 to Arweave for permanent storage, with the support of ArDrive, which sponsored the migration of 100 GB of data. The process is nearly complete, with only Animus remaining to undergo decentralization.

Check out the latest prices, charts, and data of 

 is a new donation-funded, tokenless Layer 2 rollup designed to offer a decentralized, censorship-resistant, and governance-minimized scaling solution for Ethereum. Built on open-source code and the Nethermind Surge stack, it emphasizes credible neutrality, public good funding (with all fees burned after 2030), and infrastructure that remains free from VC control or centralized dependencies.

Yesterday, BTC spot ETFs saw $71.1M in total inflows, with $16M from GBTC and $55.1M from other ETFs.

 $BOOP tokens to active Solana memecoin traders and creators who promote memecoins or Solana dapps on X. To claim, users must connect their Solana wallet or X account and launch a free token. The airdrop arrives in 30 days, but growing the token’s market cap can accelerate the reward.

Beginner

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Ethereum R1 offers a decentralized rollup solution for Ethereum

This article dives into Bitcoin liquid staking protocol Lombard Finance, how LBTC works and how you can stake LBTC through Bybit Web3.

Bitcoin stands as the undisputed giant of the cryptocurrency space, commanding the largest market capitalization. Yet, much of its potential remains untapped, often sitting idle as a store of value rather than actively participating in the thriving 

 ecosystem. Lombard Finance aims to change this narrative by unlocking Bitcoin's utility and integrating it seamlessly into DeFi.

Lombard is built upon Babylon, the innovative Bitcoin staking protocol, and is incubated by Polychain Capital. Lombard’s flagship product, 

 (LST) for BTC. This article explores what Lombard Finance is and how LBTC works, and describes the Lombard ecosystem and how you can stake LBTC through Bybit Web3.

 is a liquid staking protocol that focuses on transforming 

's role in the digital economy. Its core mission is to evolve BTC from simply being a store of value — also viewed as 

 — into a productive asset that actively generates yield and participates within DeFi. Currently, a significant portion of Bitcoin's

 sits idle, lacking the native staking capabilities or cross-chain composability seen with assets such as 

Lombard Finance addresses this shortcoming by building on top of 

, a protocol that supports BTC staking without needing 

 or custodians. Babylon allows Bitcoin's economic weight to secure other 

 (PoS) chains and applications, creating a new yield source for holders. Lombard leverages this foundation to offer LBTC, making staked BTC liquid and usable across the DeFi market.

Lombard’s goal is ambitious: to channel Bitcoin's vast liquidity into DeFi. This could potentially double the ecosystem's 

 (TVL) if even a fraction of available BTC is introduced. Lombard believes this integration will catalyze significant growth and create more sustainable market dynamics by making BTC a core, yield-bearing primitive within DeFi.

Founders and investors of Lombard Finance

Lombard Finance was founded in April 2024 by a team with deep expertise within DeFi, drawing talent from established crypto projects like Polychain, Babylon, Argent, Coinbase and Maple. This collective experience underpins the protocol's design and strategic direction.

The project was notably incubated by Polychain Capital, a prominent crypto investment firm that also led Lombard's $16 million seed funding round (which was 

 in July 2024). This round saw participation from a wide array of significant players in the crypto space — including Babylon, dao5, Franklin Templeton, Foresight Ventures, HTX Ventures, Mirana Ventures, Mantle EcoFund, Nomad Capital, OKX Ventures and Robot Ventures — thus highlighting broad industry confidence in Lombard's vision. Strategic partnerships and contributions from exchanges like

 and Bitget are further bolstering its distribution and liquidity aggregation efforts.

LBTC is Lombard Finance's flagship product — a liquid staking token (LST) that represents Bitcoin staked through the Babylon protocol. Designed as a universal liquid BTC standard, LBTC is fully backed 1:1 by native Bitcoin, ensuring its value is directly tied to the underlying asset.

The token is yield-bearing, capturing rewards generated from securing PoS networks via Babylon staking. Crucially, LBTC remains liquid, meaning holders can freely use it across various DeFi applications — such as 

 and automated vaults — without sacrificing their underlying staked positions or associated yield.

LBTC is also designed for cross-chain compatibility, natively minted on supported blockchains like Ethereum, Base and Sui and using secure infrastructure [such as 

]. This avoids the risks associated with traditional bridging or wrapping methods, thus aiming to provide a more secure and seamless way to utilize Bitcoin across the multichain DeFi ecosystem.

Lombard Finance simplifies the process of putting Bitcoin to work within DeFi through its LBTC token. The mechanism is designed with security and user experience in mind, leveraging the Babylon protocol and a robust Security Consortium.

The core benefit of LBTC lies in its ability to unlock multiple layers of value simultaneously. Holders earn native yield from Babylon staking, potentially accrue additional rewards (such as Lombard Lux points) and gain access to diverse DeFi yield opportunities, all while maintaining the liquidity of their Bitcoin position. This transforms BTC from a static asset into a dynamic, yield-generating component of the DeFi ecosystem.

Lombard Finance is actively building a wide LBTC ecosystem that already boasts over 75 DeFi integrations. Security is foundational, anchored by the 14-member Security Consortium (including prominent names like Galaxy and OKX Ventures) and validating all critical operations alongside audits and bug bounties.

Core infrastructure relies both on Babylon for staking, and on the Chainlink CCIP for secure cross-chain movement, with EigenLayer integration 

. LBTC integrates with leading DeFi applications across lending platforms (e.g., 

) and automated vaults. The platform supports multiple blockchains (including Ethereum, Base, Sui, BNB Chain) and 

 (L2s), positioning LBTC as a versatile cross-chain asset.

Here's how you can stake BTC on Lombard and use LBTC in DeFi and automated vaults.

Lombard Finance (via its LBTC token) offers a compelling way for Bitcoin holders to put their assets into use, earn yield via Babylon staking and gain exposure to the expansive DeFi ecosystem — all while maintaining liquidity. Incubated by Polychain Capital and supported by a robust consortium and growing partner network, Lombard is positioning LBTC as a secure and versatile liquid Bitcoin standard.

It’s easy to participate in the Lombard ecosystem through 

, you can utilize your Bybit Web3 Seed Phrase Wallet to stake BTC and mint 

, Lombard's vault token that represents deposits in automated yield strategies. This provides you with a seamless gateway to access Bitcoin liquid staking and DeFi yields.

Ready to unlock your Bitcoin's potential? 

Intermediate

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Lombard Finance: Polychain-backed Bitcoin liquid staking protocol

The cryptocurrency market has entered a phase reminiscent of past altcoin seasons, primarily driven by Bitcoin's recent rebound to the $94K–$96K range. 

Altcoin season might have come with reviveding speculation 

The cryptocurrency market has entered a phase reminiscent of past altcoin seasons, primarily driven by Bitcoin's recent rebound to the $94K–$96K range. This resurgence has sparked renewed interest among retail traders, shifting focus from Bitcoin to smaller, more speculative altcoins. The overall market saw a 10% increase in value during the final eight days of April, contrasting with Bitcoin's 7% gain. This trend indicates a growing appetite for risk among investors, particularly in meme coins, which have seen a surge in social media discussions.

However, caution is warranted as elevated crowd enthusiasm often precedes market corrections. Historical patterns suggest that when buzzwords like "altseason" are dominating discussions, it may signal an impending price exhaustion. The current market dynamics reflect a shift toward speculative investments, raising concerns about the sustainability of this enthusiasm.

Bitcoin's bullish sentiment substantially improves

Bitcoin's position as the leading cryptocurrency has remained steady, with discussions around its price fluctuating significantly. Following a period of pessimism, when predictions dipped as low as $10K–$69K, sentiment shifted dramatically with the price recovery. Now, optimistic projections of $100K–$159K are dominating conversations, indicating a reversal in trader sentiment.

Despite Bitcoin's consistent presence in market discussions (approximately 25% of asset topics), the ratio of bullish-to-bearish commentary has grown increasingly favorable. This suggests a growing confidence among traders bolstered by Bitcoin's recent performance. However, it’s essential to monitor whether this bullish sentiment translates into sustained investment, or if it leads to overconfidence that may trigger a market pullback.

Ethere, once a robust contender in the altcoin arena, has struggled to regain retail investor confidence despite recent bullish commentary and promises of innovation from co-founder Vitalik Buterin. Its social media presence has dwindled to about 6–7% of discussions, a significant drop from previous years. This decline highlights the challenges Ethereum faces in re-establishing itself as a go-to investment in a market increasingly dominated by speculative assets.

Conversely, XRP has seen a notable increase in optimism surrounding ETF approvals, with expectations rising to 85%. This shift reflects a broader trend of institutional interest in cryptocurrencies, potentially paving the way for significant capital inflows. Meanwhile, Dogecoin's potential ETF listings have sparked renewed interest, transforming its image from that of a meme coin to a legitimate investment option. The growing dialogue surrounding institutional adoption of Dogecoin and XRP indicates a pivotal moment for these assets, suggesting they may play critical roles in the evolving cryptocurrency landscape.

Advanced

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Bybit x Santiment social sentiment report: Altcoin sentiment recovers despite Bitcoin’s resilience

Bybit Spread Trading allows traders to simultaneously buy and sell two related instruments in order to hedge risk or profit from price discrepancies. Read more.

Whether markets are flying high or wobbling unpredictably, one thing remains true: traders are always looking for smarter ways to 

 and find profit opportunities. That’s where Bybit Spread Trading comes in. This feature is tailor-made for those who want to go beyond basic buy/sell plays and start taking advantage of price discrepancies between related instruments. In this guide, we’ll walk through exactly how Bybit Spread Trading works, why it matters and how you can start using it today, whether you’re 

is a newly launched Bybit feature that allows users to simultaneously buy and sell two related instruments — such as Spot, Perpetual or Expiry contracts with different settlement dates — in order to hedge risk or profit from price discrepancies.

This type of trading strategy is popular among institutional and professional traders because it enables more precise, controlled market exposure. However, with Bybit’s interface, the barrier to entry is significantly lowered, opening the door for individual traders to tap with just a few clicks into a powerful set of tools.

At its core, Spread Trading on Bybit is about executing what’s called a combo trade. This means entering two positions at once: one long, one short. These positions are taken on related instruments, such as a BTC Spot trade and a BTC Perpetual contract, with the idea that their prices will either converge or diverge in a way that benefits your position.

When you place a buy combo, you’re buying the instrument with the longer expiration (the “far leg”) and selling the one that expires sooner (the “near leg”). 

A sell combo is the reverse: selling the far leg and buying the near leg. The profit (or loss) comes from how the spread between these two instruments shifts over time.

For example, if you believe the spread between a Perpetual and a Quarterly Futures contract will widen, you can buy the combo. If the spread increases after your entry, that movement becomes your profit. Bybit calculates your 

 prices automatically, based on the mark prices and your defined “order price,” so there’s no need to manually crunch the numbers.

Perhaps the most important feature here is atomic execution. This ensures both sides of your combo trade are filled together, in equal quantities, or the trade doesn’t go through at all. It removes “leg risk,” which is the danger of getting filled on one side of the trade, but not the other. In volatile markets, that alone can save you from an unwanted mess.

Spread Trading on Bybit currently supports combinations such as Spot and Perpetual, Spot and Expiry, Perpetual and Expiry, or even two Expiry contracts with different dates. This flexibility lets you build strategies that align with different market outlooks — bullish, bearish or neutral.

There’s a strong reason why Spread Trading is a go-to for many experienced traders: it allows for strategic plays that are more sophisticated than just guessing price direction. On Bybit, it’s not only powerful, but also convenient.

First, you get price certainty. Your spread is locked in at the price you specify. There’s no 

 between legs because the entry prices are automatically calculated and matched. You’re trading the spread, not the individual legs.

Secondly, the trading experience is smoother. Instead of placing two separate orders and manually trying to sync them, Bybit handles everything as a single transaction. You don’t have to worry about whether one leg gets filled and the other doesn’t — that risk is eliminated through atomic execution.

Third, this setup is a great hedge against volatility. By taking opposing positions on two related contracts, you reduce exposure to sharp price movements. Your P&L becomes more about the relative performance between contracts, rather than the market direction itself.

There’s also a strong cost advantage. Trading spreads on Bybit is significantly cheaper than doing it manually. You pay only half the trading fees you’d incur if you placed two individual trades on the order book. For high-volume or 

, that translates to meaningful savings over time.

Finally, it unlocks strategy flexibility. Whether you're 

 funding rates between Spot and Perpetual, doing 

 with different Futures contracts or taking advantage of price convergence before expiry, this platform gives you the tools to execute those ideas efficiently.

How to get started with Bybit Spread Trading 

Now that you have a better understanding of how Bybit Spread Trading works, let’s look into how to get started. Please note that you’ll need to have a Bybit account in order to proceed. If you don’t already have one, please check out our 

 for more information on how to create a Bybit account.

: Log in to your Bybit account and hover your cursor over the 

: The available spreads are organized in a grid, with each tile representing a unique combo. Choose your preferred combo to trade.

Tiles with a border around them signify that Spread Trading offers a better price. Hover over a tile for more details, or use the bar at the bottom of the grid to explore more options.

On the order placement page, set up your order with the following parameters:

to place your order. A pop-up window will appear for you to confirm your order details. Then, click on 

Congratulations — you’ve successfully placed an order!

You can view your Spread Trading orders from any trading page (Spread Trading, Spot and Futures), as they all share the same order data.

 to view your active orders. You’ll be able to view the combo, underlying asset, order price and more. 

If you would like to adjust your order parameters, you may click on the pencil icon under 

. To cancel your order, simply click on the order’s corresponding 

to view your completed orders. To view each order’s information on each leg, click on the order’s corresponding 

button. For additional insights, click on 

Spread trading isn’t for everyone — but if you’re someone who enjoys strategic trading, hedging or arbitrage, it’s a tool worth adding to your arsenal. It appeals to traders who are less interested in taking a directional bet, and more focused on capitalizing on inefficiencies in the market.

You don’t have to be a pro trader to benefit, either. The simplified execution and intuitive UI mean even intermediate users can explore advanced strategies without being overwhelmed. As long as you understand how spreads work, and how your P&L is affected by their movement, you’re already halfway there.

More importantly, in times of market uncertainty or low volatility — when price action feels sluggish — spread trading gives you an alternative way to profit. It keeps you in the game — even when momentum plays aren’t cutting it.

Bybit Spread Trading is a powerful tool that combines simplicity with sophistication. Whether you're looking to hedge, save on fees or experiment with 

 strategies, it offers a clean and user-friendly way to do so. With lower risk, lower costs and plenty of flexibility, Bybit Spread Trading is a smart move for any trader looking to level up their game — especially when markets get messy.

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Bybit Spread Trading: Smart strategies for market swings

Trading

The average true range works exceptionally great in the volatile crypto market. But does it really work just as well as volatility indicator?

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Everyone wants to know when their favorite cryptocurrency will burst into volatility? And let’s be real, I’m guessing you’re no exception.

The good news is you no longer need to scratch your head. This ATR trading guide will lay down everything you need to know about market volatility so you won’t miss the ride.

The ATR is an indicator that helps traders to measure volatility and can assist you in finding the right markets to maximize profits. The best part, it’s also a good risk management tool to assess the perfect spot for your protective 

If your stop-loss is too wide, you risk losing more money than you might have wanted. On the other hand, if your stop-loss is too tight, you risk being knocked out of your trade prematurely.

The key is ATR must be used in conjunction with a trading strategy to gain a real edge in the market. In other words, it helps investors to use the volatility in their favor and not against them. 

So, What Exactly Is The Average True Range?

The average true range is an oscillator-based indicator that measures the market volatility. The ATR can be applied to any time-frame, and it is useful in any market (stocks, futures, cryptocurrencies, forex, more).

The purpose of ATR is to provide traders with information about how much an asset can move in a specific period. Hence, to help you get an idea about future volatility and therefore have more tools to manage the open positions according to the market environment.

Additionally, the average true range indicator is used to determine possible price targets, as well as a tool for placing stop-loss orders to have solid risk management.

This indicator suits the cryptocurrency market particularly because of the volatile nature. For this reason, the ATR is perfect to identify the possible price range of cryptocurrencies and help you act and manage your assets based on the information.

For example, in the next daily chart of BTCUSD, we can see how the ATR (lower panel) has increased during the last segment due to the increasing volatility. If traders expect volatility to increase, it should be taken into consideration before establishing the:

But, How Does ATR Works in Crypto Trading?

Generally, all indicators used in the Forex or stocks market can be adopted in crypto trading. And ATR is no exception. 

ATR works in a way to help you measure the changes in prices (volatility). It doesn’t matter if the price comes from a stock, a commodity, or a cryptocurrency. However, it works exceptionally well in crypto trading mainly because of the high levels of volatility. For example, in the case of Bitcoin, there have been periods where the price has run up to 990% in a year. Also, price plunges drastically, which behaves quite differently than the traditional market.

An interesting fact about ATR is, it is only meant to measure volatility. It should never be used as a buy or sell signal. 

That is because the ATR is supposed to give the possible range of movement for a given period. But it 

 define if the range is going to be made to the upside or the downside.

For example, if the daily ATR is $5, that means that the price is likely to have a daily range of $5 during the next session. So, if the price has already made the $5 to the upside, then taking a long position near the high of the day is not ideal. That is because the price has already made the average range for that day, and it is likely that the uptrend could lose momentum.

Therefore, to get the most of the ATR indicator, it must be used in combination with a trading system to get the trading signals. The ATR can be used to filter your entries.

However, before going through an example to clarify these concepts, it is important to notice that there are several ways how the ATR indicator can be drawn on the chart:

*Note: The ATR can be constructed either using price data from the current active time frame or using price data from a different time frame.

In the next example, we draw on the 1-hour BTCUSD chart the daily ATR (14 periods) projections for the day ahead (see red and green lines). The idea of using a lower time frame with the ATR is to define possible areas where the price is likely to find support or resistance.

In this particular example, the ATR is used in combination with price action analysis to find a high probability entry. Here you can see that the price went to the upper limit of the ATR, which means that the price has reached the top of the average daily range.

In this case, the inside down bar provides the entry signal, which is a high probability entry because it is at the top of the ATR of the daily time frame. Here you can see how combining price action with the ATR indicator can provide powerful trades.

Can I Really Use ATR to Find Market Trend? 

Trust me, it’s not only you who misinterpreted ATR with a trend indicator. In fact, there are even experts who think that too.

Truth is, ART is a volatility indicator. 

Remember, the ATR only illustrates how much volatility there is in the market. Such volatility is not always directional (trending markets) it can be presented in a sideways action.

If you still struggle to wrap your head around it, the next 

See how the prices show one downtrend followed by an uptrend? That action can be classified as a 

. In other words, the prices have a bigger range of movement. But nevertheless, that range not necessarily translates into a trending market. 

This is one of the reasons why the ATR must be analyzed in conjunction with a trading methodology.

The ATR is important because it offers the trader a sense of how volatile the market is. Also, based on that information and a solid trading strategy, the trader can have a competitive advantage in front of other traders.

It’s important to remember that the ATR must be used as a filter to take trades in good locations. The best part? It is also a powerful tool for defining stop loss levels and profit targets (these two concepts are explained below).

The ATR should be used by all market participants regardless of their investment horizon.

It’s because the ATR indicator is helpful to find high probability trades and have efficient trade management.

For day traders whose executions are on the 5-minute and 15-minute chart, the ideal ATR should be the daily average true range to have a reference of the levels where the price is likely to run. 

 should be the weekly and monthly average true range as the main references because the holding period of the positions is longer.

Explained: Using Average True Range Correctly

The correct use of the ATR must be done with a solid trading plan, proper risk management, and specific trading criteria. In other words, the proper use of the ATR should be done with more elements. Try including ATR with price movements, other technical indicators, and market context, that validate a position in the market.

To calculate the ATR, first, you have to calculate the current true range. These ranges are defined by the highest absolute value chosen from these three formulas:

In simpler words, we can define the price range of any given period as the difference between the lowest traded price and the highest traded price.

Secondly, the average is calculated taking as reference the true range of the previous periods, by default the ATR takes the last 14 periods for its calculation because its developer J. Welles Wilder, Jr took that number as his main reference; that is why almost all platforms have 14 periods by default. However, this number can be changed in the setting section.

Current ATR = ((Prior ATR x 13) + Current TR) / 14

A good period of calculation for ATR indicator is 14 periods because this is by default the number used by most of the trading platforms out there. So, a great number of retail and institutional traders likely take this level as the main reference.

It is important to always have in mind the 14-period ATR of relevant time frames like the 4h, daily, weekly, and monthly as the eyes of many market participants are in those levels.

The ATR is usually used as a trailing stop loss system as it allows using the volatility as a measure to protect the current positions in the market. Additionally, it helps to hold the trades for a longer time and get the most from trending markets.

Trailing stops should only be moved in the favor of the current position and never against it. Trailing SL is designed to limit risk and lock in profits without giving back too much of your profits.

The next 15-minutes Bitcoin chart is a good example of how to use the ATR to trail-stop losses.

After the price triggered the short entry at the break of the bearish flag and the market moves in our favor, then you should project the trailing stop level. It is calculated based on the sum of the current closing price and one time* the current ATR:

*Note: the number of times you can add or subtract the ATR depends on the trading style. Usually, the most common factors are 1-3 ATR.

In this particular example, the trailing stop loss level is drawn by an indicator that projects the level automatically for us (red line). That way, the work of the trader is to move the stop-loss order based on that reference.

Notice how this trailing stop system provided the short trade? It provides enough space to let the position run and take the most from the downtrend movement before a reversal took place.

The main advantage of placing targets with the ATR is that it gives clues about reasonable price targets based on the underlying volatility.

The ATR indicator gives a fair approximation of the possible range of the day ahead. But, to fine-tune your exits we need more than the ATR indicator. Setting price targets using the ATR indicator should be done in conjunction with a market structure like support and resistance levels, previous swing high/low points, moving average, more.

The next BTCUSD daily chart with the weekly ATR (14) (red line) is a great example of how to identify targets. 

For example, see how after the price made the double bottom, the main two targets were the resistance level A and B. However, the one with more chances of getting reached was area A because this is the point where the 

 is located, see how immediately the price touch that area it went down.

When we’re in a strong trading market, we can use multiple ATR as the place to take profit. Runaway markets are notorious for overshooting the ATR target.

So, for example, if the current daily Bitcoin ATR is $200, then you could place your profit target 2 or 3 times the ATR value. That would be a $400 or $600 profit target.

Here are the best practices on how to use ATR to set profit targets:

Using Average True Range to Spot False Breakout

Another use of the ATR indicator is to spot fake breakouts or fakeouts.

A false breakout usually happens when the price temporarily breaks above (below) a key consolidation pattern, support or resistance level, previous swing high, or swing low but immediately changes direction.

Most of the time, you can only tell if a breakout is real or not only after the fact. But, that’s of no use for traders. Imagine you’ve already missed a boat, so what’s the point of holding onto the hand rails? An easy way around this issue is to use the average true range which is a leading indicator.

The rule number one of trading false breakouts is to look for a divergence signal between the ATR indicator and the price action. In other words, if there is a disagreement between the ATR indicator and the price action, we’re potentially dealing with a false breakout.

For example, if a breakout below a support level is not accompanied by a rising ATR, it often shows a 

As a general rule, false breakouts tend to happen when the value of ATR is low.

In conclusion, to spot a false breakout using the ATR indicator simply look for these clues:

Many times, the best way to understand a concept is through a practical example. In this case, we are going to use the 15-minute Bitcoin chart to show how a trade could be executed and managed.

The entry is based on a moving average system (any technical analysis could be used). Here the long entry was triggered when the fast-moving average (10 SMA) crossed the slow-moving average (20 SMA) to the upside. The initial risk was below the most recent swing low (see the chart).

After the position goes in our favor, the trailing stop should be based on the average true range, which is the green line. So, when the price advances, the ATR line also advances. The trailing stop should always be moved in favor of the trade until the SL is triggered.

The ATR is a powerful indicator to take your trading performance to another level. However, its main limitation is that by itself, it only provides information. But it is not useful to get precise entry signals. It always has to be analyzed in conjunction with a trading strategy to get the most from the indicator. In other words, the ATR is always dependent on a trading strategy or trading system.

In summary, the ATR could be a powerful tool in your trading arsenal to get the most from volatile markets. At the end of the day, the predictive nature of the ATR indicator can provide us with precise risk management parameters and also with reasonable price targets.

What Is Average True Range (ATR) & How to Use It for Trading?

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