ATR Trail Stop

Description
The ATR Trailing Stop is a technical indicator designed to help traders set stop-loss levels based on price volatility. It is derived from the Average True Range (ATR), first introduced by J. Welles Wilder Jr. in 1978. Using the ATR as a trailing stop emerged as a way for traders to account for volatility when adjusting their stop-loss levels, making it simpler to set precise levels without being stopped out too soon.

Input Parameters

• Length - number of periods used in the calculation

Use Cases

1. By accounting for volatility, the ATR Trailing Stop allows traders to set more accurate stop-loss levels, reducing the likelihood of premature stop-outs.
2. The ATR Trailing Stop adjusts automatically with changing market conditions, enabling traders to maintain an appropriate level of risk management.
3. The ATR Trailing Stop can help traders confirm the direction of a market trend, providing additional confidence when making trading decisions.

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