DaPex LabsAI-Powered Financial Intelligence
DaPex LabsCalculate market volatility to set dynamic stop losses. The ATR tells you how much an instrument typically moves in a given period.
Answer Capsule: ATR (Average True Range) measures market volatility, not direction. Use 2x ATR for swing trade stop losses and 1.5x ATR for intraday stops. Dynamic stops based on ATR outperform fixed-pip stops in all market conditions.
True Range = Max of:
1. Current High 鈭?Current Low
2. |Current High 鈭?Previous Close|
3. |Current Low 鈭?Previous Close|
ATR = Average of True Range over N periods (typically 14)
How to use: Set stop loss at 1.5-2脳 ATR from entry. This dynamically adjusts to market volatility 鈥?wider stops in volatile markets, tighter in calm markets. Never use fixed pip stops when ATR is available.
True Range = Max of:
1. Current High 鈭?Current Low
2. |Current High 鈭?Previous Close|
3. |Current Low 鈭?Previous Close|
ATR = Average of True Range over N periods (typically 14)
How to use: Set stop loss at 1.5-2脳 ATR from entry. This dynamically adjusts to market volatility 鈥?wider stops in volatile markets, tighter in calm markets. Never use fixed pip stops when ATR is available.
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