Hi, Dave!

You made very good videos about the trade.
So i would like to ask you something about ATR. When we use this indicator why we should make our stops 2 or 3 levels ATR? I mean that we can place the stop on 1 level ATR, besides we could drag the mouse to the ATR, see the value of ATR and place the stop with that level, right? I am confused.

Thank you! Best regards!

Hi Mista_Kei,

The stop can be wherever you would like it to be you simply need to realize that the closer the stop is the more likely you are to be stopped out which is not necessarily a bad thing just something to be aware of.

The stop levels that I am using in my videos are simply examples to illustrate the concept of using the ATR to place stops. So with this in mind my intention is not to recommend using a particular number of ATR's to place stops but simply to show you how to incorporate the ATR when placing stops.

Best Regards,
Dave