⚡️ ATR Indicator – Volatility Radar for the Smart Trader! 🌪️📏
Want to know how volatile the market is before you enter a trade?
The Average True Range (ATR) indicator doesn't determine the direction, but it reveals the strength and intensity of the upcoming movement! 🔥
📊 What is the ATR indicator?
ATR measures market volatility by calculating the average difference between the highest and lowest price over a period of time (by default 14 candles).
✅ High ATR → High volatility
✅ Low ATR → Calm and stable market
💡 How to use ATR in your strategy?
🔹 Determine the deal size and stop loss
- If the ATR is high → make the stop loss wider
– Reduces the chances of you exiting early due to sudden fluctuations.
🔹 Confirmation of breaches
– If the ATR suddenly rises → it often means a real breakout (not a fakeout)
🔹 Exit time
– If the ATR starts to decline after a strong move → momentum weakens → consider taking profits
🔹 Trailing Stop
– Use ATR multiplier to place a stop loss that follows the trend and locks in profits.
🧠 Pro Tip:
Many traders use the 2x ATR to determine logical stop loss levels below or above the entry point.
⚠️ Important points:
❌ The ATR indicator does not give you a trend – use it with trend indicators such as EMA or MACD
❌ Rise during news or sudden events → Watch out for risks!
🟢 Is it on Binance?
Yes ✅
Find "ATR" in the list of indicators.
🛠️ How to add it:
Open any chart
Click on [🧠 Indicators]
Type "ATR"
Add it – the default settings (14) are sufficient for most strategies.
📌 The ATR indicator is like a radar - it doesn't tell you where the market is going, but it alerts you to how volatile the journey will be.