What Traders Say About ATR Indicator on Reddit
The ATR (Average True Range) is a widely discussed indicator among traders on platforms like Reddit, where thousands of retail and professional traders share their strategies, tools, and opinions.
In this article, we summarize what Reddit users say about the ATR indicator—how they use it, what they like or dislike about it, and what tips they offer to make it more effective.
1. Most Reddit Traders Use ATR for Stop-Loss Placement
A major theme in Reddit trading threads is that ATR is one of the best tools for setting stop-losses.
“I use 1.5× ATR for stop-loss and it’s saved me from getting wicked out so many times.”
– r/Daytrading
Many traders mention they prefer ATR-based stops over fixed-point stops because they adapt to market volatility.
2. ATR Is Valued as a Volatility Filter
Reddit users often highlight that ATR is not a signal generator, but a volatility confirmation tool.
“I don’t use ATR to enter trades. I use it to tell if a setup is even worth trading. If ATR is flat, I skip it.”
– r/Forex
This shows how experienced traders use ATR to filter out weak or low-momentum trades.
3. Combining ATR with Other Indicators is Common
Reddit traders commonly combine ATR with:
- RSI to filter overbought/oversold setups
- MACD for trend confirmation
- Supertrend for entries while using ATR for stops
“My combo: Supertrend for entry, ATR for exit. Clean, simple, works great.”
– r/Stocks
4. ATR Works Across All Markets
Many traders note that ATR performs well in:
- Forex (e.g., EUR/USD, GBP/JPY)
- Crypto (especially BTC, ETH)
- Stocks and Options
- Futures (like NQ, ES, and crude oil)
“ATR works in any market. That’s why I love it. You just have to calibrate it to your timeframe.”
– r/CryptoCurrency
5. Reddit Cautions: Don’t Use ATR for Entry Signals
While ATR is praised for its usefulness, some Reddit threads warn beginners not to misuse it.
“It doesn’t tell you when to buy or sell. ATR is all about how much—not which way.”
– r/TradingView
This reinforces that ATR is best used for risk management, not timing the market.
6. Reddit Tips for Using ATR Better
- Use 1.5× ATR for stop-loss
- Use 2–3× ATR for take-profit
- Avoid entries during flat ATR periods
- Adjust your ATR period based on strategy:
- ATR(5–10) for scalping
- ATR(14) for swing trading
- ATR(21) for long-term trades
Conclusion
The Reddit trading community has a strong appreciation for the ATR indicator—especially for its simplicity and effectiveness in managing volatility. Whether you’re a beginner or an advanced trader, Reddit users agree that ATR is not about entry signals—it’s about staying in the game and controlling risk intelligently.
By learning from what real traders share, you can apply ATR more effectively in your own trading strategy.
✅ FAQs
1. Do Reddit traders recommend using ATR for entries?
No. Most Reddit traders suggest using ATR for exits and volatility filtering—not for signals.
2. What ATR multiple do Reddit users recommend for stop-loss?
1.5× ATR is the most commonly suggested multiple.
3. How do Reddit users combine ATR with other tools?
They often use ATR with Supertrend, RSI, MACD, or moving averages.
4. Does ATR work for crypto according to Reddit?
Yes. Reddit traders say ATR works well in crypto when calibrated to the asset’s volatility.
5. Is ATR discussed in beginner-friendly Reddit threads?
Yes. Many beginner-level threads on r/Daytrading, r/Forex, and r/CryptoCurrency include ATR discussions.
