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Market Intelligence › Basic Terminologies
The average movement of a candle, in points.
Published by The Retail Trader · JUL 31, 2026 · Indicators
ATR (Average True Range) — the average movement of a candle, in points. The most practical tool to decide the width of stop loss.
This term comes under Indicators, in the section "VOLATILITY and VOLUME". This tells how big the move is and how much participation is behind it:
Other terms in this group — understanding them together is more useful:
• Bollinger Bands
• Squeeze
• Standard Deviation
• Volume
• Volume Spike
• OBV (On Balance Volume)
• VWAP (Volume Weighted Average Price)
• MFI (Money Flow Index)
To read the entire group and all its examples in one place, see the journal "INDICATORS: FORMULA TOOLS" - this term has been taken from there.
This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.