Average True Range (ATR)

Average True Range (ATR) is a commonly used metric to determine volatility based stops. It is the difference between the high and low price on any given period, indicating volatility in a currency pair. You can use this as your benchmark to put stop losses.

Most forex trading platforms have an in-built feature that lets you put in the period (say 10 when you are in your day chart) and it will get you the "10 day" ATR. Similarly, if you put in 100 into your hour chart you get the "100 hours" ATR. It's that simple.

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