Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
The average size of a bar's full range, including gaps, over a chosen period.
The unit of normal movement for a given stock. Stops and sizes measured in ATR travel between instruments; ones measured in rupees do not.
Average True Range — the typical distance a security travels in a period, including gaps.
How far this stock normally moves. Set stops in ATR multiples, not in fixed rupees.
A stop set a multiple of average true range away from entry.
Gives the trade room to breathe. Combine it with structure: find the level, then check it clears one ATR.