Setting stops in volatile markets using Average True Range (ATR) for better risk management.

From Investing.com: 2025-04-10 08:05:00

Recent market volatility has become increasingly common, with intraday swings of over 1,000 points. This chaos presents challenges for traders with setting stops and targets. The Average True Range (ATR) offers a solution by adjusting to real-time market conditions, providing volatility-adjusted stop-loss and take-profit levels. ATR also helps with position sizing and trailing stops, allowing traders to adapt to changing market conditions. While ATR is a lagging indicator, it is essential in today’s volatile markets, providing traders with a rule-based framework for risk management and improved consistency in execution.



Read more at Investing.com: How to Set Your Stop in Volatile Markets