SFL ATR Bands
Many traders use ATR as a way to determine stop loss placement. It usually works like this:
- Stop loss for a short trade = high of last candle + ATR value
- Stop loss for a long trade = low of last candle – ATR value
This is an indicator that allows you to do just that: it gives you an easy way to view current and historical volatility using ATR-based price bands.
Features
The indicator is configurable with the following settings:
How To Use This Indicator
Since this indicator shows average volatility bands, it is a good measure of how much the price moves. So we can use ATR bands in a number of ways:
- Stop loss for a short trade = high of last candle + ATR value
- Stop loss for a long trade = low of last candle – ATR value
This is an indicator that allows you to do just that: it gives you an easy way to view current and historical volatility using ATR-based price bands.
Features
The indicator is configurable with the following settings:
- ATR period
- ATR multiplier
- ATR applied to highs/lows OR the close price
- Bands offset
- Only show for the last X candles
How To Use This Indicator
Since this indicator shows average volatility bands, it is a good measure of how much the price moves. So we can use ATR bands in a number of ways:
- it’s an easy way to see where you can place your stop loss
- you can use a multiple of ATR as your trade target
- you can trail your stops alongside the ATR bands