ATR: Know How Much the Market Is Moving

Average True Range, or ATR, measures market volatility using true ranges over a selected period.

It doesn't tell you whether the market is bullish or bearish.

Instead, it helps estimate how much price has been moving.

If NQ's volatility increases, a stop that worked during a quiet session may be too tight for current conditions.

ATR can help with stop-distance research, position sizing, and volatility comparisons.

The key is to use it with a defined strategy rather than blindly setting every stop to the same ATR multiple.