Average True Range Specs Question

Discussion in 'Risk Management' started by TheoCap, Dec 26, 2007.

  1. TheoCap


    Hey all,

    Was wondering the rule-of-thumb, industry standard, variables most people use when calculating their ATR stops for intermediate- term (swing) trades.

    1) How many times the ATR?
    2) How many periods (days) to calculate the ATR?

  2. Gary Fox

    Gary Fox

    Hello TheoCap,

    Check out the writings of Chuck Le Beau. Read his ATR Bulletins, and especially the Chandelier exits.


    Le Beau uses a ATR20 for swing trading, though many others use 14. His exits vary between 2 and 3*ATR20


  3. TheoCap


    Great. thanks.