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 sizes each signal's stop in ATRs — about 1.5 ATR under the breakout pivot, or just under the pattern's support when that's closer — so the stop fits that specific stock's volatility, and exposes ATR% as a screener field.
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