What Is Average True Range (ATR) & How to Use It for Trading?
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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 stop loss.
Still, stop-loss orders can be tricky.
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.