What is ATR (Average True Range)?
ATR (Average True Range) measures a market's typical bar-to-bar movement — its volatility. An ATR of $2 means the market has recently moved about $2 per bar on average.
ATR's killer application is stop placement. A fixed 50-cent stop is generous on a sleepy stock and suicide on a volatile one — the same dollar distance means completely different things. A stop set at 2× ATR adapts automatically: wider when the market is wild (so normal noise doesn't stop you out), tighter when it's calm.
Several Poshkan scanners size their stops in ATR multiples for exactly this reason — the '×ATR' setting you'll see in their risk sections. It's one number that makes the same strategy sane across BTC, EUR/USD, and a small-cap stock.
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