Suppose market has ATR of 100 pts. During the day price traverses 300 pts based on tick or 1 min data. You come up with a "wiggle" number of 3 points - thats how much price is likely to wiggle. Intuitively, this number seems to be useful for setting stops. The number will change depending on how far you look back and whether your lookback period contains trend or range. Is this nonsense? If someone uses such data I would appreciate comments.