The technical indicator Average True Range (ATR) is an indicator of market volatility. It was introduced by Welles Wilder in his book “New Concepts of Technical Trading Systems” and since then the indicator has been used as a component of many other indicators and trading systems. This is a fairly popular indicator included in most market analysis software. Its main purpose is to set the correct Stop Loss levels. This is the most effective method of setting stops, which is proven by statistics.
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