The best Average True Range (ATR) settings depend on various factors, such as the market being traded, the trading timeframe, and the trader’s individual trading strategy and risk tolerance.
ATR is a technical indicator that measures volatility and calculates the average range of price movements over a specific period of time. ATR is commonly used to set stop-loss and take-profit levels, as well as to determine the size of position a trader should take.
Some traders may use a shorter period, such as 7 or 14, for a shorter-term trading strategy, while others may use a longer period, such as 50 or 100, for a longer-term strategy. The ATR period should be adjusted to fit the individual trader’s trading style, risk management strategy, and trading goals.
Ultimately, the best ATR settings for a trader are those that help to achieve consistent profitability and manage risk effectively. Traders should experiment with different ATR settings and assess their performance over time to determine the most suitable settings for their trading strategy.