Average True Range (ATR) values for Stops, Targets and Trailing

[Andras Bessenyei]

Hello Everyone,

I love using ATR for stops, targets and trailing, but would like to read other traders' experiences who also calculates with ATR.

For example i trade Elliott waves in trend direction, mostly using 2 ATR for stop-losses and 3-8 ATR (14 periods) for targets following with ATR trailing to lock in profits. After taking profits, i reconsider entering the trade setup again. If market is more volatile, then i set SL to 3 ATR to avoid quick swings against the favored direction.

What ATR values do you find best that matches your strategy? Please also feel free to add any other useful ATR tips.

[Fernando Carreiro]

Andras Bessenyei:I love using ATR for stops, targets and trailing, but would like to read other traders' experiences who also calculates with ATR ... What ATR values do you find best that matches your strategy? Please also feel free to add any other useful ATR tips.

I too use ATR quite a lot for stops, but if you really want to get sophisticated with ATR, have a look at Kase Deviation Stops which are various levels of the ATR and Standard Deviation of the ATR.

Here are a few links ...

• Setting Stop-Losses using Price Volatility (by Cynthia A. Kase)
  
• A small turn to stop loss with ATRs: Kase DevStop stop loss
• Masteting Stop-Loss setting: How about using Kase Dev-Stops?