GLOSSARY · MARKET STRUCTURE

What is ATR (Average True Range)?

ATR measures how much a market typically moves per bar — a gauge of volatility.

ATR averages each bar's true range over a period (often 14). Traders use it to size stops to current conditions: wide stops in volatile markets, tighter ones in quiet markets.

EXAMPLE

If NQ's 5-minute ATR is 12 points, a 4-point stop is likely to be hit by normal noise.

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