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Atr Calculator

Calculate atr with our free Atr Calculator. Compare rates, see projections, and make informed financial decisions. Enter your values for instant results.

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Formula

TR = max(H−L, |H−Prev Close|, |L−Prev Close|) | ATR = Average of TR over N periods

True Range captures the full extent of price movement including gaps. ATR averages these True Range values over N periods (typically 14). For stop losses, multiply ATR by a multiplier (1.5x, 2x, etc.) and subtract from entry for longs or add to entry for shorts. This gives dynamic stops that adapt to market volatility.

Worked Examples

Example 1: ATR-Based Stop Loss for EUR/USD

Problem: ATR = 0.0050 (50 pips), Entry: 1.1000, 1.5x ATR stop, 2x ATR target.

Solution: SL Distance = 0.0050 × 1.5 = 0.0075 (75 pips)\nTP Distance = 0.0050 × 2.0 = 0.0100 (100 pips)\nLong SL = 1.1000 - 0.0075 = 1.0925\nLong TP = 1.1000 + 0.0100 = 1.1100

Result: Long: SL 1.0925 | TP 1.1100 | RR 1.33:1

Example 2: ATR Calculation from Candle Data

Problem: Given 14 candles of HLC data, calculate ATR and assess volatility.

Solution: True Range for each candle = max(H-L, |H-prevC|, |L-prevC|)\nATR = Average of all True Range values\nVolatility = ATR / Price × 100\nIf ATR% < 0.3% = Low, 0.3-0.7% = Moderate, >0.7% = High

Result: ATR gives adaptive stop loss and take profit levels

Frequently Asked Questions

What is the Average True Range (ATR)?

The Average True Range (ATR) is a technical analysis indicator created by J. Welles Wilder Jr. that measures market volatility. It calculates the average of the True Range over a specified period (typically 14 candles). The True Range for each period is the greatest of: current high minus current low, absolute value of current high minus previous close, or absolute value of current low minus previous close. ATR does not indicate price direction — only the degree of price movement (volatility). A higher ATR means more volatility, while a lower ATR indicates a quieter market.

What is a good ATR multiplier for trading?

Common ATR multipliers: 1.0x ATR is considered tight — may get stopped out by normal volatility. 1.5x ATR is standard — good balance between protection and room to breathe. 2.0x ATR is conservative — gives more room but requires larger account or smaller position size. 3.0x ATR is used for swing trades and longer-term positions. The best multiplier depends on your trading style, timeframe, and pair. Day traders often use 1.0-1.5x ATR, while swing traders use 2.0-3.0x ATR. Test different multipliers in backtesting to find what works for your strategy.

What ATR period should I use?

The standard ATR period is 14, as recommended by its creator Wilder. However, different periods serve different purposes: 7-period ATR is more responsive to recent volatility changes, useful for short-term traders. 14-period ATR is the standard — balanced between responsiveness and smoothness. 20-period ATR is smoother and less reactive to single candle spikes. Longer periods (50-100) show the broader volatility trend. Most traders use 14-period ATR. If you find your stops are getting hit too often, consider increasing the period or the multiplier.

Is my data stored or sent to a server?

No. All calculations run entirely in your browser using JavaScript. No data you enter is ever transmitted to any server or stored anywhere. Your inputs remain completely private.

Can I use Atr Calculator on a mobile device?

Yes. All calculators on NovaCalculator are fully responsive and work on smartphones, tablets, and desktops. The layout adapts automatically to your screen size.

How do I get the most accurate result?

Enter values as precisely as possible using the correct units for each field. Check that you have selected the right unit (e.g. kilograms vs pounds, meters vs feet) before calculating. Rounding inputs early can reduce output precision.

References