ATR Targets and Stop Loss

Average True Range (ATR) measures recent volatility. ATR-calibrated stops and targets adapt to market conditions: wider in volatile regimes, tighter in quiet ones. This is the math behind every risk/reward calculation on Omni Trade Edge.

Why ATR-based sizing

Fixed-dollar or fixed-percent stops ignore volatility. A 1% stop on a 5% ATR stock is noise; on a 0.5% ATR stock it's premature exit. ATR multipliers scale automatically.

The target ladder

T1 = 1.0 × ATR (high-probability scalp). T2 = 1.5 × ATR (base runner). T3 = 2.5 × ATR (extension). Trim discipline scales with conviction.