ATR Trailing stop

So, i want to start using trailing stops to lock in profits and to eliminate the human factor when the trade starts to move against you. Too many times a winning trade turns into a loosing one because of me, me hoping that the price will turn around ones again into at least breakeven.

My question is how do i use the ATR value when i set the trailing stop?

I am currently looking at the GBP/JPY in the 1H timeframe and the ATR value is 0,200. How can i use that when i set my trailing stop? Is the ATR value in pips? points? btw i am aware of that i can multiply the ATR as well

Also, other currency pairs have ATR values with more decimals, like the EUR/USD, that has a ATR value of 0,00200, how do i use that value when i set my trailing stop?

I hope you guys understand what i am asking about, its my first time in any forum.

ATR is dependent on price volatility and time-frame but you must also be aware of the time horizon. So, although your time-frame for GBP/JPY trading is H1, the ATR can only be obtained if you input the time horizon, e.g. 20ATR on the H1 time-frame means the ATR will be calculated from ranges of the last 20 hours.

The ATR value is derived from price and is expressed as a portion of price. So if GBP/JPY is 143.465 and you are long, and the ATR20 is 0.200, you might want to set a stop 1 x ATR20H1 below, which is -
143.465 minus 0.200 = 143.265.

The ATR figure you are asking about – 0,200 – represents 20,0 pips.

In the U.S., we use periods instead of commas, so we would say that the ATR figure 0.200 represents 20.0 pips.

In the rest of this post, I’m going to use the U.S. notation (periods, rather than commas), so that I don’t confuse myself. I hope I won’t confuse you.

Here’s a previous post in which I answered a similar question about the ATR in yen-pairs –
What does the ATR value translate to in pips? You might find it helpful.

That post did not address the difference between yen-prices and all the other forex prices. As you pointed out in your post, pairs other than yen-pairs have more decimal places in their ATR’s. That’s because they have more decimal places in their prices.

But, the rule given in the post above – that the fifth digit in any forex price represents single pips, regardless of where the decimal point falls – applies, and you should remember it.

So, in the case of the current EUR/USD price – 1.14350 (approximately) – the 5 represents 5 pips, 50 represents 5.0 pips, 350 represents 35.0 pips, etc.

And an ATR figure of say 0.00200 (to use the example from your post) would represent 20.0 pips in the EUR/USD price, just as 0.200 represents 20.0 pips in the USD/JPY price.

Keep in mind: A pip in the USD/JPY pair is not equal to a pip in the EUR/USD pair. The definition of “pip” is 1/10000 of a unit of the quote currency in the pair. So, a pip in the USD/JPY pair is 1/10000 of one yen, and a pip in the EUR/USD pair is 1/10000 of one US dollar – two very different quantities.

Also, keep in mind that in all yen-pairs, the JPY is always the quote currency, never the base currency.

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Thank you! you really answered my question. Rule of thumb, the fifth digit represents single pips! i will read your previous answer as well.

Howdie all; Good day; where can I get a free but effective ATR trailing stop indicator please that can be used for renkos for MT4 platform…?