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 for accuracy by Daniel Agrici, Founder & Lead Developer
Atr Calculator
Calculator
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Formula: TR = max(H−L, |H−Prev Close|, |L−Prev Close|) | ATR = Average of TR over N periods
Worked example — Long: SL 1.0925 | TP 1.1100 | RR 1.33:1
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) TP Distance = 0.0050 × 2.0 = 0.0100 (100 pips) Long SL = 1.1000 - 0.0075 = 1.0925 Long 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|) ATR = Average of all True Range values Volatility = ATR / Price × 100 If 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.
How is True Range different from regular range?
The regular range is simply High minus Low of a single candle. True Range accounts for gaps by comparing the current candle's high and low against the previous candle's close. True Range = max(High - Low, |High - Previous Close|, |Low - Previous Close|). This matters because if a candle gaps up, the distance from the previous close to the current high represents actual volatility even though the current candle's high-low range might be small. True Range always captures the full price movement between periods.
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 for accuracy by Daniel Agrici, Founder & Lead Developer · Editorial policy
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