The ATR is a powerful tool, which I use in both my day trading and swing trading activities. Remember the real power of the ATR is its ability to judge the “frenzy” and the “calm” in a security. To quickly recap, below are the key takeaways from t

Stop Loss – Initial 2 X ATR. The first setup is a pullback trade to previous resistance for this example. What you should see is the trailing stop ATR is too close to price so we would need to use the ATR from the indicator window below.

The ATR trailing stop is an indicator which, as its name suggests, uses the Average True Range as a trailing stop. In this code, I did choose a period p = 14, but feel free to change it. How to calculate the ATR trailing stop (ATRts) ? The ATRx is defined