ATR (Average True Range)
A volatility measure of how much a stock typically moves per period — used to size positions and set stops proportional to the stock's normal range.
ATR averages the 'true range' (the largest of today's high-low, high-to-prior-close, and low-to-prior-close) over a lookback. A high ATR means a wide-swinging stock; a low ATR a quiet one.
ATR doesn't predict direction — it scales risk. A stop placed a multiple of ATR below entry adapts to each stock's volatility instead of using a fixed percentage that's too tight for some names and too loose for others.
On StockSetups
StockSetups uses an ATR buffer when building each signal's stop, so the trade plan's stop sits a sensible distance below structure for that specific stock's volatility, and exposes ATR% as a screener field.
Related terms
See atr (average true range) on tonight's board.
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