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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.

Reviewed by Daniel Agrici, Founder & Lead Developer

Reviewed by Daniel Agrici, Founder & Lead Developer

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.

References

Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy