Average True Range (ATR) us our favorite indicator and here is why: For those of you that aren’t familiar with ATR, it is very simple. ATR is just the average range or distance a stock has moved over a past period of days. Usually, platforms will use the past 14 trading days as the average.🗓️ Now, on NORMAL days (meaning days where there is no news events or earnings affecting the stock like we explained in this video), you can use ATR to gauge if a stock still has some room to continue upwards

The ATR tool helps from placing stops too tight and to avoid market manipulation. Learning to accurately place a stop loss level will save you a LOT of trouble in your trading career. This tool simply helps you visualize the ATR values placement from entry. You can adjust the settings if you like a tighter or wider stop but I prefer 1.5XATR when day trading! That's the default on this.For more trading, financial and investing tips and resources, follow @financialolic and become apart of the amaz