Stop being "stopped out" by market noise. Use the Average True Range (ATR) to set professional stop-loss levels that account for current market volatility.
A fixed 20-pip stop loss might work when the market is quiet, but it will be hit instantly during high volatility. The ATR tells you the average move of a currency pair over a set period.
By setting your SL at 1.5x or 2x the ATR, you give your trade enough "room to breathe" while still maintaining a logical exit point.
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This calculator is part of our professional suite of Forex currency calculators. Explore the fullForex Trading Toolkitto optimize your strategy and manage risk like a professional.
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Explore related calculators to sharpen your edge
Calculate net profit/loss for any currency pair trade in your account currency
Calculate the dollar value of a pip for any lot size and currency pair
Calculate the optimal lot size based on your risk percentage and stop loss
Calculate required margin and leverage impact for forex positions