How to Use the Average True Range to Set Stops. http://www.financial-spread-betting.com/strategies/stop-loss-strategies.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! ATR Stops. How to use the average true range to judge your stop placements in day trading or swing trading. We could trade with very small trade sizes and big stop levels but then we'll end up never making much monies. So what is the average true range stop? We could use a fixed amount of an ATR for a stop or we could place stops a multiple of the ATR. The beauty of this is that we are automatically allowing room for volatility.
