ATR (Average True Range)
A volatility indicator measuring the average range between high and low prices over a specified period, accounting for gaps.
Explained Simply
ATR doesn't indicate direction — it measures how much a stock typically moves. If a stock has an ATR of $2 on a $100 stock (2%), that tells you to expect roughly $2 of movement per day. ATR is invaluable for setting stop-losses and position sizes: a wider ATR means you need a wider stop (to avoid getting stopped by normal noise) and therefore a smaller position size to maintain the same dollar risk.
How Tradewink Uses ATR (Average True Range)
ATR is the foundation of Tradewink's stop-loss calculation. All stops are set as a multiple of ATR (typically 1.5-2x ATR below entry for long positions). This means stops automatically adjust for volatility — tighter on calm stocks, wider on volatile ones. ATR also feeds into the VolatilityStrategyEngine for regime-adaptive position sizing.
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See ATR (Average True Range) in action
Tradewink uses atr (average true range) as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.