An ATR trailing stop is one way to manage a trade at both the time of entry as a stop loss setting and if it evolves into a winning trade by exiting when the price reverses far enough to trigger a trailing stop exit. This type of trailing stop uses the technical indicator of the Average True Range which is a measure of the magnitude of current price volatility, it is a moving signal and expands as the trading range grows and contracts as the trading range gets smaller. This process is based on the fact that the ATR is a measurement of the average volatility of the price action in a set time period. This is a ... (full story)