ATR (Average True Range): sizing stops to the market
Average True Range (ATR) is the 14-period average of each candle's true range, which includes the gap from the previous close. It is the cleanest volatility number on the desk: a stop of 1.5x ATR adapts automatically to calm and wild markets. SIMMENT labels volatility from ATR and sends an alert when a single 1h range exceeds 2.5x ATR 14.
Why ATR beats a fixed percent
A 2% stop on BTC is generous when ATR is 0.5% and hopeless when ATR is 3%. Expressing distance in ATR units keeps risk consistent: 1.5x ATR for the stop, 2x for the first target, 4x and 8x for the rest is the ladder the setup score prints as reference levels.
ATR as a regime gauge
When ATR expands quickly the market has changed regime; wider stops and smaller size are the response. When ATR contracts to multi-week lows a squeeze is building. The dashboard tile shows ATR 14 with LOW VOLATILITY, NORMAL or HIGH VOLATILITY labels.
How the SIMMENT desk uses ATR
The volatility watcher compares each forming 1h candle's range to ATR 14 and pushes a "volatility expanding" alert above 2.5x. Fair value gaps only count when they are at least a quarter of ATR, and a freshly formed gap above 1x ATR triggers a fast-move alert.
Quick answers
What ATR period does SIMMENT use?
14 candles on the 1h chart for the dashboard and the watchers.
This metric is a tile on the SIMMENT paper desk. Open a free account, get 10,000 virtual USDT and watch it on live Binance prices. Enter the desk → · iOS app
Educational content. Simulated trading only. Not financial advice. Updated 2026-09-06.