Enter the currency exchange rate and the average 1 month ATR for the year into the calculator to determine the ATR stop loss.

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## ATR (Average True Range) Stop Loss Formula

The following equation is used to calculate the ATR (Average True Range) Stop Loss.

ATR = CER * (1-ATRm1)

- Where ATR is the average true range stop loss
- CER is the current exchange rate
- ATRm1 is the average 1 month ATR (decimal form)

To calculate the ATR stop loss, simply subtract the average 1 month ATR from 1, then multiply the result by the currency exchange rate.

## What is ATR (Average True Range) Stop Loss?

Definition:

The ATR (Average True Range) Stop Loss is a technical indicator used in trading financial instruments, with traders using it to determine a stop loss level.

One of the primary uses for this indicator is to determine a stop loss level for a trade. In this case, once the price has fallen by an amount equal to or greater than 2 ATR values, a trader will sell their position to avoid further losses.

Average True Range (ATR) is a technical analysis indicator used to measure volatility. It is a measure of the magnitude of a move or a trend.

For example, assume that during the last 20 days, a stock has moved from $10 to $15 and then dropped back to $12 — it has made two moves: one from $10 to $15 and another from $15 to $12. The first move is considered the up-move, and the second is regarded as the down-move. If you take an average of these two moves (i.e., ($15-$12)/2), you get an ATR of 1.5.

The ATR indicator shows how far price moves on average in one day. A large ATR value means that price typically moves far in one direction before reversing course, while a small ATR value implies that price changes frequently, but not by much.