ATR question

I see some of these trading systems saying that SL is ATR x2 etc but how do I find out what the ATR is?

Like if I add ATR to H4 of EU right now, it says the ATR is .0025 so would my SL be 50 pips? Or am I doing this wrong?

You may use this ATR based indictor for stop loss

http://www.forexfactory.com/attachme...202009%2016:43

Ty,

You are quite correct. Many people use the Average True Range (ATR) to determine where to place a stop. The logic being that if the price continues oscillating within this average range the stop will stay put unless higher than average volatility occurrs.

Your decisions will be, what multiplier of ATR you wish to use...2xATR, 2.5xATR, 3xATR...etc. Also, how many bars or time frames you wish the ATR to calculate. Many seem to use 13 or 14 bars. The idea is that it is over this period that the "average" of the ATR will be taken.

To reflect more recent price activity, use a smaller number. To reflect a broader view fo the ATR use a higher number.

There are also are also MT 4 indicators that can show you where to place your stops such as the one I've included here. If you truly use this you will want to update your stop on the conclusion of each time frame.