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Using Average True Range (ATR) for Position Sizing and Dynamic Stop-Loss

✍️ By Analyzeio Team🗓️ Published 2026-07-27Language: en

Using Average True Range (ATR) for Position Sizing and Dynamic Stop-Loss

The Average True Range (ATR) is a volatility indicator that measures degree of price fluctuation.


\text{ATR} = \text{Rolling 14-period average of True Range}