Average true range — the average size of recent price ranges, including gaps, in the asset's own units.
Last verified 13 September 2026 · written by the DexLadder team
What it means
Average true range — the average size of recent price ranges, including gaps, in the asset's own units.
Why it matters when you trade
ATR turns "volatile" into a number you can size with. Placing stops at a multiple of ATR adapts the distance to current conditions instead of to a round percentage, and sizing from that distance keeps the risk per trade constant even as the market speeds up and slows down. It says nothing about direction — it is a ruler, not a signal.
Worked example
ATR(14) = 1.80 on a 45.00 asset. A 1.5× ATR stop sits 2.70 away; a 1% account risk of $100 then allows 37 units.
See it on live markets
DexLadder runs atr against live market and pool data, with simulated capital, so you can watch it act on an order instead of reading about it — no account, no wallet, nothing installed.