ATR Trailing Stops - Indicator Formula

The Average True Range is a way to measure the price volatility of a specific asset. It gives traders and investors a measurement of the average volatility of price over a certain amount of time. It can help traders be more specific with their exits by using it to set trailing stop-losses.

If Long, when the price of an asset crosses below the ATR trailing stop line - Exit your long position and get flat the market.

If Short, when the price of an asset crosses above the ATR trailing stop line - Exit your short position and get flat the market.