How to Use ATR (Average True Range) for Stoploss Placement

📏 ATR measures average volatility over a period. Higher ATR = More volatile stock → Wider stoploss needed Lower ATR = Less volatile stock → Tighter stoploss possible ✅ How to Use: Calculate ATR (14 period) on daily chart Place stoploss at 1.5× ATR from entry price to avoid premature hits Adjust position size based on risk per trade 📌 Example: Stock at ₹200, ATR = ₹4 → Stoploss distance = ₹6 (1.5× ATR) → Final SL = ₹194 for long position. 🧠 ATR helps place logical stoploss instead of random points — improving win rate and avoiding unnecessary exits