ATR (average true range)
The Average True Range, or ATR, is an indicator that is used to help gauge the volatility of a given currency pair on any timeframe. Many traders use this information to help determine their stop size. For example, if the EUR/USD shows an ATR of 0.0031 on the 60 minute charts then a day trader might use a stop-loss of 31 pips (before spread). This would help to weed out any natural "whip-saw" motion of the currency pair and protect your original trade idea. Advanced: the average/default period for ATR is 14, meaning it takes into account the last 14 candlesticks on the timeframe you are looking at.