Suggestions for Optimal ATR Periodicity for SL and TP...

Hi everyone,

I am curious if anyone has an opinion on this. I am wondering, regardless of the timeframe used, if anyone has a suggestion for optimal period(s) for ATR when used to guide the calculation of stop loss and/or take profit.

Specifically, I have seen ATR(8) and ATR(14) used. Does anyone have an opinion on which tends to be better in practical use? What do you think the pro's and con's are?

If you prefer one over the other, please also explain why.

Thanks for any advice in advance!

I like to see 2 periods of ATR. One is recent, for example ATR(14), and one is a useful average - ATR(200). ATR can be useful for calculating stop losses and take profit figures. This is a simple reply to a simple question because there are times when you might want to increase or decrease this figure because of the type of trade or risk.

So the most obvious use for ATR is not actually the best and ATR is a very underrated indicator which has all kinds of uses and you would do yourself a service by thoroughly researching all the possibilities.

It's been my experience that optimal period depends on the timeframe.