thanks pipbull great info.
How Is ATR Stop Calculated?
Basically the ATR trailing stop uses the Average True Range for it's calculation (see Average True Range for the description of it). Once this figure is calculated the figure is then multiplied by a factor (usually 2 0r 3) and then taken away from the close. The following is an example of how a 3 x ATR Trailing Stop may be calculated on any given day:
ATR Figure = $0.08
Last Close = $6.78
3 x ATR Stop = $6.78 - ($0.08 x 3)
= $6.78 - $0.24
The trailing stop in this case would be set at $6.54