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Work out your stop loss using the ATR

Advanced Gap Strategy
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Work out your stop loss using the ATR

This lesson assumes that you understand your financial goals and are familiar with all the risks and opportunities online trading provides. You can schedule a free call with our expert trader that will help you find the best way to achieve your financial goals.

The Average True Range (ATR) is used to position your stop losses. Add the ATR to your chart and then set the period to 20.

Observe the ATR's current reading and then calculate 66% of that reading:

Stop loss size= (ATR reading / 100) x 66

Round down the number you calculate – this will show you how far away

Advanced Gap Strategy

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