ATR Stop-Loss Calculator
Calculate transparent long-side and short-side stop references by offsetting the latest entered close by a declared multiple of Wilder Average True Range.
Enter chronological OHLC bars
Paste completed bars from oldest to newest using the same symbol, timeframe, price scale and data feed.
Whole number from 2 through 200, no longer than the entered history.
Positive decimal from 0.01 through 100; this is a scenario, not an optimized setting.
One row per bar: Label, High, Low, Close. Use commas, tabs or semicolons; omit a header row.
Close-anchored ATR references
Entered Volatility Stop Overlays 1.0.0.
| Bar | High | Low | Close | True range | Wilder ATR |
|---|
How the ATR stop-loss references are calculated
Seed ATR = arithmetic mean of the first n true ranges
Later ATR(t) = [(prior ATR × (n − 1)) + TR(t)] ÷ n
Long reference = latest Close − multiplier × latest ATR
Short reference = latest Close + multiplier × latest ATR
Version 1.0.0 first validates every entered bar: high must not be below low, and close must sit inside the bar’s high-low range. For the first row, where no previous close exists, true range is defined as high minus low. Every later true range includes possible gaps by comparing the current high and low with the previous entered close.
The first available ATR is seeded at the end of the selected period with the arithmetic mean of those first true ranges. Each later value uses Wilder’s recursive moving average. That declared initialization matters: an exponential moving average with a different smoothing constant, a simple rolling mean, or a broker indicator with a longer hidden warm-up can produce a different number.
The latest entered close is the explicit anchor. The long-side reference subtracts the volatility offset; the short-side reference adds it. These are symmetrical price references, not automatic orders. A stop attached to a real position must also reflect trade direction, entry logic, acceptable account risk, tick increments, current spread and the broker’s minimum stop distance.
A careful interpretation workflow
Start with the visible inputs and row-level audit trail, then decide whether the entered history and declared convention answer your actual risk question. A precise line is not evidence that the line is optimal.
- Check the latest close and ATR before reading either stop reference; both drive the final level.
- Confirm that your chart’s ATR uses Wilder smoothing and the same seed convention before comparing values.
- Use completed bars in chronological order; reversing the rows changes gap-aware true range and the recursive ATR.
- Treat the multiplier as an explicit scenario input, not a universally optimal setting for every pair or timeframe.
- Round a chosen level only after checking the instrument tick size and broker price precision.
- Translate price distance into account risk with a separate contract-aware position-size calculation.
Worked example from the audited fixture
How to interpret the result
The fixture shows how volatility expansion widens the reference distance: ATR rises after four-range bars enter the recursion. A wider distance does not make a trade safer by itself. If volume is unchanged, it can increase money at risk; use the separate ATR Position Size Calculator or Lot Size Calculator after you choose a defensible stop.
ATR stop, Chandelier Exit and Supertrend compared
All three use ATR, but their anchors and state rules answer different questions. They should not be treated as duplicate names for the same stop. The table below keeps the differences visible before you transfer a value into a chart or risk worksheet.
| Overlay | Anchor | Path dependence | Primary output | Not included |
|---|---|---|---|---|
| ATR stop reference | Latest entered close | ATR recursion only | Symmetrical long/short reference | Volume and order rules |
| Chandelier Exit | Lookback highest high or lowest low | ATR plus rolling extrema | Long/short extrema-based reference | Crossing or fill verdict |
| Supertrend | HL2 basic bands retained by prior state | ATR plus recursive final bands and state | Active line and mechanical state | BUY/SELL recommendation |
The ATR Calculator isolates the underlying volatility series. The ATR Position Size Calculator then answers a separate question: how much volume corresponds to a chosen risk budget and ATR distance. Separating line placement from size helps prevent a wider volatility stop from silently increasing account risk.
Assumptions and limits
- At least the selected ATR-period number of bars is required; the period must be a whole number from 2 through 200.
- The ATR multiplier must be a positive decimal from 0.01 through 100 and is not optimized by this calculator.
- A maximum of 2,000 entered bars is accepted; timestamps, missing bars and duplicated bars are not detected.
- The first true range is high minus low because no earlier close is supplied; adding prior history can change the ATR path.
- No bid-ask spread, slippage, commission, overnight gap, guaranteed-stop term or broker minimum-distance rule is applied.
- The latest close is an analytical anchor, not necessarily your entry price or a live executable price.
- No lot size, probability, price forecast, BUY or SELL direction, order placement or personalized recommendation is produced.
Prepare OHLC data before calculating
Export completed bars from one symbol, one timeframe and one broker or data vendor. Keep them in chronological order from oldest to newest and include enough earlier history for the ATR recursion to warm up. A short pasted sample can reproduce the formula while still differing from a platform that initialized ATR hundreds of bars earlier.
Use raw price units consistently. Do not mix points, pips and quoted prices inside the OHLC rows. For currencies quoted to different decimal places, the formulas still operate in price units; any conversion to pips needs the symbol’s pip size. Metals, indices, crypto and CFDs can have contract and tick conventions that differ materially from spot FX.
Check high, low and close fields against the source before pasting. The calculator rejects a close outside the stated bar range, but it cannot discover a mislabeled timestamp, duplicated candle, daylight-saving shift, weekend rule or missing session. Record symbol, timeframe, time zone, source, dates, parameters and model version with any saved result.
If the level will inform a live order, separately check bid/ask side, current spread, tick size, minimum stop distance, guaranteed-stop rules, slippage, market gaps and position volume. These operational constraints are deliberately kept outside a descriptive entered-data calculator.
Frequently asked questions
- It subtracts multiplier times latest Wilder ATR from the latest entered close for the long-side reference and adds the same offset for the short-side reference.
- Version 1.0.0 uses gap-aware true range, seeds ATR with the arithmetic mean of the first period true ranges and then applies Wilder recursive smoothing.
- Data feed, current-bar handling, missing history, period seed and smoothing convention can all create differences.
- No. It is only the disclosed calculation anchor and may differ from your actual entry, bid, ask or executable market price.
- No. Use the separate ATR Position Size Calculator or Lot Size Calculator after selecting a defensible stop and risk budget.
- The price arithmetic can run on consistent OHLC units, but pip size, tick size, contract value and broker rules are not inferred.
- Not automatically. A wider price distance can increase money at risk unless position volume is reduced accordingly.
- No. The page provides entered-data reference arithmetic, not a BUY, SELL, order, forecast or personalized recommendation.
Sources and methodology
- TradingView — Average True Range — Documents true range and the default RMA/Wilder-style ATR smoothing.
- MQL5 Reference — iATR — Official MetaTrader 5 reference for the ATR indicator handle and period input.
- Fidelity Charting Indicators Guide — Provides independent indicator context, including ATR and volatility-based interpretation.
The operational contract is Entered Volatility Stop Overlays version 1.0.0. Formula branches, boundary initialization, fixture outputs, validation and the production-isolation guard are tested before a staging release. Source links explain methodology; they do not endorse this site or any trading outcome.
Continue the volatility and risk workflow
Compare chart feeds and stop-order terms
Before transferring an entered volatility line to execution, compare the broker’s symbol history, quote precision, spreads, commissions, stop-level rules and gap policy. An ATR series calculated from one chart feed need not reproduce exactly on another, and a reference price is not a guaranteed fill.
Risk and affiliate disclosure: Leveraged forex and CFD trading can result in substantial losses. These are affiliate links, so ForexMT4Indicators.com may receive compensation if you register or trade through them, at no additional cost to you. Availability and terms vary by jurisdiction and broker entity.