ATRStocks
Best ATR Settings for Stock Trading
ATR is widely used by stock traders for position sizing and stop placement. Unlike fixed-percentage stops, ATR adapts to each stock's volatility—critical when trading both stable large-caps and volatile small-caps. Earnings and sector events can spike ATR temporarily.
📊 Recommended ATR Settings for Stocks
14
Period
Classic Wilder setting—about 3 weeks of trading days
2
Stop Multiplier
2x ATR provides adequate room for normal daily stock swings
1% account risk
Position Size Base
Risk consistent percentage per trade using ATR stop distance
Alternative ATR Settings by Trading Style
1Day Trading
Period: 10Stop Multiplier: 1.5
Tighter ATR stops for intraday stock trades.
2Swing Trading
Period: 14Stop Multiplier: 2.5
Wider stops for multi-day stock positions.
3Low Volatility Stocks
Period: 20Stop Multiplier: 1.5
Longer period for stable large-cap stocks with lower volatility.
Pro Tips for Using ATR in Stocks
✓ATR-based stops adapt automatically when volatility increases around earnings
✓Use daily ATR for swing trade stops, intraday ATR for day trade stops
✓Compare stock ATR to sector average to identify unusually volatile names
✓Chandelier exits use ATR from highest high—effective for trend-following stocks
✓Position size inversely proportional to ATR for equal risk across stocks
Common Mistakes to Avoid
✗Same stop distance for all stocks regardless of volatility
✗Not widening stops around earnings announcements
✗Using ATR as a directional indicator
✗Ignoring ATR spikes from one-off news events
Try These Settings in VaultCharts
VaultCharts includes ATR with customizable settings. Test these configurations on your favorite markets with our free charting platform.