I will suggest you read this book: Average True Range: Your Step-by-Step Guide to Profitable Forex Trading. Unlike other ATR indicators this one allows the user to customize the table placement of the ATR calculations, and the colors of each row on the table, and the text. Defaults to a 21-period average of the True Range and 3-period multiple for the stop. As an example, we can multiply 21-period ATR by a multiplier of 3 and that can act as a stop loss. Example: The current ATR value on EURUSD is 0. In the settings, you are able to adjust how much of a multiplier you require. 00. What is the effective atr stoploss? Dynamic stop loss level for trading. When a trade does go wrong, there are only two options: to accept. A multiple between 1. 🔝 Free ATR Trailing Stop Loss Indicator in Top MT4 Indicators {mq4 & ex4} with Download ⤵️ for MetaTrader 4️⃣ & 5️⃣ - The Biggest Collection of Best Indicators & Systems on Best-MetaTrader-Indicators. Simple ATR (Average True Range) Channel to find your Stop Loss and/or Take Profit. The. One must also not forget to utilise stop loss when using this indicator. ATR means average true range and is the market’s degree of volatility during a specified time period. e. There are many calculators for stop loss. 04. This gives the trade room to move but also gets the trader out quickly if the price drops by more than 12%. Do not trade with money you cannot afford to lose. There's an indicator named Keltner Channels that does the same thing all along the charts; it plots the atr as and how the price progresses like a kind of a curve; add the indicator twice and change the multiplier to 2x to get the 2x ATR value curve. 5x atr, and 3x atr. 0 to 5. Use the supertrend lines as your stop loss level. You will need to decide on an ATR multiplier first, which signifies the number of times. Keltner Channel Definition. A common usage is to keep the stop loss at 1 ATR or 1. Professionals have used this volatility. This strategy/indicator can be used to either trade manually per signal Alerts or you can configure a completely automated system using AutoView (considering your Broker has API capability/included). It combines the Average True Range (ATR) indicator, momentum shifts, and customizable take profit levels to provide insights into potential market movements. Breakeven in Pips or ATR – Set the BE in pips or ATR multiplier. User can change ATR multipiers, as well as the ATR length used. UseATR (default = false) — if true, ATR indicator determines the stop-loss and take-profit levels. ) If the stock price rises from $54. What indicator is best for stop loss placement? Using the Average True Range indicator (ATR) is a smart way to determine where your stop loss should be placed. The supertrend indicator calculation is shown below–. Symbol; Comment; Magic Number; Buy/Sell; Parameters. Average True Range, as its name suggests, is the average of true range. Shorter version: As the title states, this is a 'Trailing Stop' type indicator, albeit one with a whole bunch of additional functionality, making it far more versatile and customisable than a standard trailing stop. I still don't understand why it isn't working. com . A higher multiplier will result in a wider trailing stop, while a. 2 multiplier setting but on a 1-minute timeframe. The way to interpret the Average True Range is that the higher the ATR value, then the higher the level of volatility. Forex traders can use the ATR Trailing Stop Indicator for MT4 to understand the trend, volatility and to identify entry and exit points. At the same time, it is necessary to choose goals that correspond to the risks. ATR multiplier. 1-minute Supertrend Indicator strategy for crypto trading: TradingView. The next step in the ATR calculator online is to just manually type in the current price of whatever you’re trading. Average True Range or the ATR indicator is the best indicator you can use for setting a stop-loss. 1. This is a common indicator that can be found on most charting platforms, and it’s really easy to use. 0958 and the ATR-14 is 198 pips, you would set. US0383361039. For example – if the ATR is 10 pips, and the current candle-close of EUR/USD is 1. While there are other ways to address your stop placement including using support resistance levels, previous day high or low, and even trend lines,. What is the effective atr stoploss? It is ATR 14 settings. 55]/10 or 1. High less 3. There's an indicator named Keltner Channels that does the same thing all along the charts; it plots the atr as and how the price progresses like a kind of a curve; add the indicator twice and change the multiplier to. The original Chandelier Exit formula consists of three parts: a period high or period low, the Average True Range (ATR) and a multiplier. It’s a measure of volatility, not a directional indicator. Using a volatility adjusted TP and SL will allow you to set your targets and losses based on market conditions. Appreciate help from the community. If the trail type is "unmodified", this value is calculated as the Average True Range (ATR) over the defined period multiplied by the specified factor. This will tell Metatrader to trail your stop every time price moves x points away from your stop, to maintain a maximum distance of what. Do you have any ideas how to make 3 Take Profit levels with following logic:MinusTolerance and addTolerance only add a few pips to a fixed stop price. If you check off "Change ATR Calculation Method" it will base the calculation off the sma and give you slightly different results, which may work better depending on the. The multiplier "2" should be adjusted to each specific pair. Use multiplier atr sl and set to 2. This is the average of all above ATRs multiplied by 1. Let's assume the price is 100, the average true range is 5. So if your ATR is . The modified Atr indicator presented by Sylvain Vervoort in “Average True Range Trailing Stops” in this issue is available in Wealth-Lab’s TascIndicator library version 1. Sets the initial position of the user interface. 505. Two ways to use this value. I'm using the UT Bot alerts indicator on Pinescript to modify the existing code to duplicate the same code to use two ATR lengths and multipliers for Long and Short. 5=67. The Volatility Stop indicator calculation involves multiplying the ATR by a predetermined multiplier. Trailing Stop Type: If set to High/Low, the script will use swing lows and highs in its calculation. The ATR Trailing Stop study plots the trailing stop value, the calculation of which depends on the specified trail type. 50* (10-1) + 1. Value 4 - 90 Period ATR (blue, bold) Value 5 - 1 Period ATR (green) Value 6 - 1 Period ATR (red) Value 6 – Prime Stop Loss Placement (maroon). InvestyourAsset Oct 15. 5 x stop loss calculation. 0045 * 2) = 1. You can also select the color for Average True Range line by selecting the box to bring up a color. 19=4. Submit the strategy’s trailing stop orders. Source Code. Calculate the position size: $180 / (40 pips × $10) = 0. If you’re shorting a stock, you would place a stop-loss at a level twice the ATR above the entry price. By default, a multiple of 3 is used. The issue is not the ATR Multiplier functioning, but when the ATRMultiplier is less than a certain Stop Loss, 10 pips, 15 pips, 20pips etc. 當天最高點和最低點間的距離. the Average True Range (ATR) and a multiplier factor. Then once the stock has reached 10% > than my entry, I want it to remove the 5% stop loss and begin using an (3. 1 pip is worth $10 on 1 standard lot of EUR/USD. อ้อ เขาตั้ง Stop Loss แบบ fix percent จากจุดเข้า ที่ -1. Here is the relevant part of the script. In this article, we will look at the top 10 Atr Multiplier Stop Loss that you can buy right now. 💥The Auto Trailing Stop-Loss indicator is a technical indicator that uses the ATR (Average True Range) to calculate a trailing stop-loss for both long and short positions. a minimum number of pips. This script is an enhancement of ATR Indicator. The best part, it’s also a good risk management tool to assess the perfect spot for your protective stop loss. The ATR indicator also known as the average true range indicator is one of the best tools a day trader can use to set their stop loss and take profit levels. The ATR Trailing Stop indicator is a risk management technical tool developed to display the optimal zone to exit a trade. I'm trying to implement an ATR trailing stop indicator in MQL5. Then we just target 1. var string tt_src = "Source of ATR Stoploss placement. 1 is stop/limit equal distance from entry" RiskMTip = "Multiplier as a function of the ATR value projected from the calculated swing high/low. It is constructed with two parameters, namely period and multiplier. e. For example if the EURUSD. 5X” the ATR value shown) below your entry point. The next day, price of XYZ is $53. 5 as it allows us to accommodate more volatile instruments. The supertrend indicator calculation is shown below–. 6. But when two different ATR factors are used- 3 and 5- the profit increased to 7404. - price above EMA200. ☑ Multiplier It's used on the take profit when the ATR option is selected on the Exit Type. Steps “2” and “3” represent prudent risk and money management principles. ATR STOP This strategy snippet uses an entry stop loss defined based on a multiple of the average true range value. While there are other ways to address your stop placement including using support resistance levels, previous day high or low, and even trend lines, the ATR stops use market volatility. For example if the opt columns display opt1 = 2, opt2 = 15 and opt3 = 45, then the best stop loss indicator to use would be: HHV(CLOSE – 2*ATR(15),45) You can easily alter the stop loss indicator parameters to reflect the results: Remember we started off with 3, 5 and 20. NumBars: Numeric: 5: Number of bars into a position at which the trailing stop is activated. atr(atrPeriod) you are always updating the value of atr. The Average True Range (ATR) is a simple yet very effective technical indicator, developed by the American mechanical engineer J. , I want the S/L to be the. 3500 – (0. The multiplier is typically set at 2, but this can be adjusted to suit individual trading styles. 4 points below (or above) the current. 0028, which is equal to 28 pips. In this way, in moments or instruments of greater volatility, the trailing stop would move away from the price, while if the volatility is. Sep 21, 2020. If you look closely, your exits use the last atr value and not the one at the time of entry. 39236 (เกือบ 25% ของช่วงรายวันเท่ากับ 92 จุด) Stop Loss: ATR*2 ปัจจุบัน ซึ่งเท่ากับ 14 จุด ตัวคูณ 3 น่าจะดีกว่า: Stop. The ATR Indicator The ATR Indicator will display the value of the volatility in the upper right corner of the window. Calculation of Average True Range – [ (Prior ATR x 13) + Current TR] / 14. then the stop-loss calculation will be 1 4. Do not trade with money you cannot afford to lose. I do not guarantee consistent profits or that anyone can make money with no // effort. Using a multiple of ATR allows a trader to give highly volatile positions enough room to run, while at the same time making sure that low volatility positions are held tightly in check. The Directional ATR (DATR) is an indicator that enhances the traditional Average True Range (ATR) by incorporating the direction of the candle (bullish or bearish). This lesson demonstrates various methods we can use to code trailing stop losses in Pine Script to lock in profits in strategy scripts - including ATR and Percentage-based variants with several parameters. This Supertrend strategy will allow you to enter a long or short from a supertrend trend change. Trailing stop: True – Activates the Trailing start and Trailing step optionsPeriods: Traders usually use 10 periods – Average True Range number of days (ATR – yet another indicator that gives you market volatility value by decompressing the range of prices of a security for a particular time). You can use the ATR indicator to identify multi-year low volatility because it can lead to explosive breakout trades. Using a multiple of ATR allows a trader to give highly volatile positions enough room to run, while at the same time making sure that low volatility positions are held tightly in check. This multiplier varies among traders, but a common choice is 2 or 3. The second number in green is your trailing stop loss price for Long trades, and the third number in red is your trailing stop loss price for Short trades. $75 ($25 from the high) as the stock moves up, the atr stop moves higher with it. 5 and 3. * StopLossInitialATRMultiplier: initial ticks for stop-loss based on average true range (atr) * StopLossInitialSnap: initial stop-loss snap or initial ticks/atr - whichever is greater. 75 with a limit of . It multiplies the ATR with a multiplier or coefficient and plots the line. STRATEGY ☑ Use The Strategy This will enable/disable the. 263. Alerts when price crosses the trailing ATR. Increase the ATR multiplier for smaller timeframes (ATR x 2. As ATR is dynamic, i. This is the average of all above ATRs multiplied by 1. If the price increases to $45 tomorrow, the stop-loss would move up to $39. If theres any bugs or super trend already in QC, please let me know. 04 from your entry, assuming today was your entry day. The system uses ATR multipliers (same concept implemented in Big Candle) for Break Out, Stop Loss, Take Profit and Trailing Stop. Using the 10-period ATR and 2-factor multiplier mentioned, we can create a 1-minute Supertrend crypto scalping strategy. Trailing stop step in points. The MT4 Expert Advisor Template is the starting template for the development of my trading bots. Step 3: Calculate the final upper and lower bands. The indicator is based on two dynamic values, period and multiplier, and incorporates the concept of Average True Range ( ATR) to measure market volatility. Multiplier: A multiplier is a value through which the ATR would be multiplied. Note that when the multiplier value is set too high, it results in fewer signals being generated. WEALTH-LAB: Average True Range Trailing Stops. When it comes to trading, one of the most important factors. Watch the indicator and move your stop loss to the Long or Short as necessary. The Keltner Channel is usually based on a 20-period EMA and 10-period ATR but these levels can be adjusted to meet the needs of any individual trading style. 5. ATR Trailing Stop Calculation: The modified ATR trailing stop introduced by Vervoort, limits extreme price changes of a single bar. andregrillo 5月 3. Welles Wilder. The key, of course, is making sure your multiplier for. Default multiplier setting is 1. This means the stocks average range is 1. The indicator is an incredible system suited for managing an open position; it. // 5. Determine your exit point when the RSI crosses the “70” upper limit line and is accompanied by a declining ATR value from a previous peak. I don't have enough data to pick one or the other for the trailing stop — they produce pretty similar results, particularly if you allow a different ATR period for the trailing stop and optimize it. The multiplier value 3 is referred to as the Chandelier Exit multiplier and can be altered by the trader. Here, we’ll provide the WealthScript code to enter a discretionary position, long or short, on the open of a. AptarGroup, Inc. Leave the second multiplier to 0 if not used. The green line can also act as a trailing stop loss. Label showing the current ATR, up above the last bar. Indicator allows to draw a second multiplier if you need different values for SL and TP. We can use that multiplied result as a stop loss. In the stock charts you can add an ATR based stop to your charts by adding the Stop: Chandelier exit overlay indicator to your chart. ATR 4h - Trade 4h/1h. Indicator allows to draw a second multiplier if you need different values for SL and TP. lookback = 66 i used GetMaxValueOffset() that uses a lookback number, that is how many bars it looks back to find a signal. That is, your stop will be $3. For Long positions: Stop Loss will be placed at the low of the previous candle minus the ATR value times the ATR multiplier. ATR measures volatility, taking into account any gaps in the price movement. A smaller multiplier (2) creates a tighter stop and a larger multiplier creates a wider stop (3). And here it is. 1325, and you want to enter short, then your stop loss would be at 1. Typically, the Chandelier Exit will be above prices during a downtrend and below. There's no loop in these double methods. 00, stop is triggered at the best available price as it is now a market order. 04 from your entry, assuming today was your entry day. 0958 and the ATR-14 is 198 pips, you would set. Entry: When the line turns green/red, we can enter with a long/short market order as the candle closes. There's a better alternative to this. That’s what we call slippage. g. In general, the greater a, the greater the share of current bar's true range. Average True Range -based trailing stops are the best stop loss, so they are used in many auto trading or EA-based trading software as a stop loss calculator. ATR Stop Loss Finder. This controls your ATR multiplier. 45. This multiple is often referred to as the "ATR multiplier. ATR Stop Loss Finder. 5 or 2. Kate W. 0009 set your stop loss 18 pips away. Calculate the maximum risk in dollars: $12,000 × 1. 3. Assume you want to use an ATR multiplier of 2. 5 + Trade open price) + 10 PIPS = ATR + open price of candle that closed above/below, example 1. // 5. Explain the average correct range. And for Short selling just the inverse. How to use a two times atr stop. In this version you can change the ATR calculation method from the settings. 13575. // ATR railing stop #property indicator_chart_window #property indicator_buffers 3 #property indicator_plots 1 // plot. Successful forex traders master placing a stop loss at the best prices. The reasoning is that the ATR is essentially the expected number of pips the market is moving, so setting it 2xATR puts it somewhere beyond. In Trailing mode, it. This is the difference between (prime stop loss) and 1 day period move. Stop Loss level: (ATR Value*1. 00. ATR衡量的是在過去一段時間內價格的波動情況，然後取平均值作為結果。. The ATR Stop beats the Dollar Stop 66% of the time, although many of the resulting profit factors are extremely similar to each other. 29 *3) + $126. Value 7 - Move Left (red). 05) below the entry price. Average True Range (ATR) is a technical analysis indicator developed by J. This means that if you multiply 10 by 2, your stop loss would be 20. ATR Trailing Stop Indicator for MT4 - - Download FREEBest ATR Multiplier Trailing stop loss. You can do something like this:👉ATR Length: Set the period for calculating the Average True Range. And I am not selling the holy grail. 50* (10-1) + 1. Step 3. TR = H – Close. Creating limit and stop orders; Limit and stop orders are pending orders; despite this, they are created similarly to market orders. 2. I used Min Stop Loss as a constant to optimise. Use the ATR Trailing Stop Hidden EA MT5 and hide your trailing stop from your broker. You can set your stop loss 1 ATR away from Support & Resistance so you don’t get stopped out prematurely. There are a few different ways to use ATR but one of the main uses I have learnt is to set your trailing stop loss levels with. 716, the ATR stop will be between. – a trade breakeaven stop. STARC Bands: A type of technical indicator that is created by plotting two bands around a short-term simple moving average (SMA) of an underlying asset's price. Through back-testing, he also examined the behavior of different ATR periods and multipliers on a variety of assets, and came to conclusions similar to ours, namely that bigger ATR multipliers when calculating the stop loss price barriers generate better results than smaller ones. (e. 05 on a 1. For example, the stop loss could be set at 2 times the average true range of the last 14 bars. Best ATR multiplier stop loss How to use atr for stop loss: ATR stop loss indicator, best atr multiplier stop loss, atr stop loss, tradingview atr stop loss. Period refers to the ATR number of days. 0. You can add your own entry and exit signals and run it. 5% of the total account. The idea here is to use the 5-period and the 1. So much to learn!. 0 and later. Defines whether to initialize ATR calculation at a short or a long position. That said, it depends on the. 4 = 272. e. Use multiplier atr sl and set to 2. Alternatively, set your stop loss 1 ATR or 2xATR beyond the recent high/low. This Supertrend strategy will allow you to enter a long or short from a supertrend trend change. Web atr trailing stops work by taking the average true range and multiplying it by the default multiplier of 3. SHIFT-Click to create take partial and stop loss levels. 05, meaning that over the last 14 days this stock fluctuated, on average, $2. Sources: Entry = 'non-trailing' from entry price (start point) Open = open High = high Low = low Close = close OC2 = (open + close)/2 HL2 = (high +. This Supertrend strategy will allow you to enter a long or short from a supertrend trend change. The indicator is easy to use and gives an accurate reading about an ongoing trend. We’ve incorporated these calculations. 5 and 3. The latest ATR would be: ATR = [1. The ATR (Average True Range), a reliable measure of volatility, acts as an effective risk management tool, functioning as a trailing stop-loss. We have also looked into the design and features of each product to ensure that they are the best in the market. 52 per day over the last 14 trading days (assuming a 14-day ATR). Supertrend Trailing Stop MT4 EA is an expert advisor that can manage stop-loss of your orders. where TR is current bar's true range, ATR1 is previous bar's ATR, and a is the smoothing factor – not the period, but a number calculated from the period and reaching values from 0 to 1. How to set stoploss with atr. ATR Stop Loss v4. Welles Wilder Jr. Simple visualisation of Average True Range in Pinescript V4. I encounter a problem, I want my stop loss to be a straight line based on ATR at the time of the entry, but I think the problem is when I'm still in buy (entry) position, the longcondition match and trigger another new stop loss line. ATR typically uses between a 5- and 21-period span. UI top left position. It’s possible to set 3 levels of take. In a down trend, the equation is share price + (ATR x 3) In the example below, you can see how the ATR Trailing Sell Stop (in red) continues to move up as a share. Then Upper Band = $100 + ($5 x 2) = $110; Lower Band = $100 – ($5 x 2) = $90. The soure code detects ATR value at entry price, applies the multiplier and will set a static (= non trailing) stop-loss to each position A pinescript v4 label will appear for each new signal displaying the ATR*multiplier value at. The stop limit order will operate differently. Now paste the Atr trailing stop. (Risk-Free) The Complete Guide to ATR Indicator Last Updated: September 1, 2022 By Rayner Teo I love the Average True Range (ATR) indicator. Load a second Supertrend indicator and set the ATR period to 10 and the multiplier to 3. The SuperTrend Indicator is a technical analysis tool designed by Olivier Seban. ATR, or Average True Range, is a technical analysis indicator to measure the volatility of an asset. The Mod ATR Trailing Stop Loss Indicator uses an underlying ATR to compute for the distance between price action and the trailing stop loss. Set a small take profit target, between 0. Chandelier Exit Long: n-day Highest High – ATR (n) x Multiplier. In my analysis, I am using a 20-period ATR. or the Swing High/Low prior to entry. Best combination I've found is ATR for the initial stop loss and then either ATR or PSAR for the trailing stop. Now you can set the length and the multiplier for long/short in the settings menu. How to set stop loss based on atrDescription. 2, 3, or 4) to determine the distance for the trailing stop level. Volatility Average True Range (ATR) stoploss ATR bands targets band stops atrstop. An Average True Range (ATR) is a technical indicator that provides you with the degree of price volatility. As a result, if you bought the stock at its current price and you used a multiplier of 2x, you might set an initial stop at $4. 005 and the trader decides to use a multiplier of 3, they would multiply 0. 7 x 3 = 21) The next step is to choose a price anchor. 25 to $54. I cannot. Average True Range (ATR) The Average True Range (ATR) is a tool used in technical analysis to measure volatility. Technical analysis does not recommend using the Chandelier Exit to generate trading signals. And Current Day’s TR= $5. But before we can add a multiplier to our code, we need to create an ATR multiplier input that gets a floating point decimal number from the user. SL ATR multiplier. 20, and the remainder (0. Conversely, if you’re on the 1h chart, the ATR indicator will show average volatility over the last 14 hours. 1/2 of my pairs traded better using 1. 0. Formula = Stop Loss = Lowest(Lowest Length) - (ATR Multiplier * ATR (Smoothing, Length)) However, the user needs to manually identify the swing low for a better stop. SL factor multiplier: Ranges between the values of 1. 5. 1335 (a size of 35 pips). Multiplier: Multiples vary between 2. This expert advisor supports the following input parameters to be configured by the trader: ATR Period — a period for ATR indicator value calculation. Enrico Wnendt. For example, in the context of an uptrend, a 2X ATR (21) stop loss order would trail below the current price by twice the ATR reading of the last 21 periods. 10 (that is, 2 x $2. This situation would call for placing a stop-loss at $37 ($43 minus $6). As the price moves in your favor, the stop loss trails it by the ATR and multiple at the time of the trade. Specifically, it displays the High and Low price plus and minus the ATR times a user-supplied multiplier. ATR is used to identify stop loss as well; If the ATR of a stock is 48, then it means that the stock is likely to move 48 points either ways up or down on average. I use this indicator to get the values of my stop loss and take profits. EA Input function. The strategy increase profits by almost 70% by using two ATR values. In essence, the ATR measures the candle size and the range of price movements. The result of the calculation is the number of winning trades. The ATR is an indicator that helps traders to measure volatility and can assist you in finding the right markets to maximize profits. 59K views 2 years ago. Set the trailing stop level: Multiply the ATR value by a multiplier (e. Feb 4, 2019. Set your time interval to 5, 10, or 15 minutes for day trading, and your chart to candlesticks. 138. 34. Step 3: Adding An ATR Multiplier. The Volatility Stop indicator calculation involves multiplying the ATR by a predetermined multiplier. 0 lot long CADJPY fell back to your parabolic trailing stop at 80. Description: A strategy based on ATR with auto-backtesting capabilities, Take Profit and Stop Loss (either Normal or Trailing). The best part, it’s also a good risk management tool to assess the perfect spot for your protective stop loss. SL factor multiplier: Ranges between the values of 1. It is calculated by taking the average of the true range over a specified period of time. This indicator offers several trailing solutions in one EA, and offers you four technical methods to trail your stop loss level. Multiplier to be used when calculating the Stop loss value. In order to make it easier to visually see where those stops would be, I’ve created an ATR bands. Originator Welles Wilder suggested using 7. The best ATR Stop Loss multiplier for time frames starting from H1 is "3". For example – if the ATR is 10 pips, and the current candle-close of EUR/USD is 1. 19, so this indicator will use 4. Once position has increased to X% above purchase, apply ATR Trailing Stop Loss. Set a small take profit target, between 0. ดังนั้น ผมจึงเปิดการซื้อขายที่ 1. In the trailing stops menu, you can set a fixed trailing stop by points. Right click on your trade in the trade manager window. 3. In MetaTrader 4 and MetaTrader 5, it is added to the chart via the Main Menu: Insert - Indicators - Oscillators - Average True Range. Current ATR = [(Prior ATR x 13) + Current TR] / 14 – Multiply the previous 14-day ATR by 13. In general, the greater a, the greater the share of current bar's true range. 20, and the remainder (0. Breakeven in Pips or ATR – Set the BE in pips or ATR multiplier. Three multipliers are used. It is used to determine the stop loss position by using the ATR indicator, in conjunction with the low of the candle. Stop Loss = ATR x multiplier. The Average True Range (ATR) measures volatility over a time period. Supertrend is calculated using two formulas depending on whether it is a bullish or. atr period. This depends on your goals and risk tolerance. The multiplier can be thought of as an ingredient in determining the position of the new stop. Welles Wilder, based on trading ranges smoothed by an N-day exponential moving average.