ATR

CatchAfilM

Personally I am hedging using stop loss orders. If the stock is up over my technical pattern term I was aiming for, then using stop order using ATR or double ATR.

Coffeewin

Entered SPX CCS 7125/7150, index at +4.5 ATR looking for a mean reversion down to about 7000

Coffeewin

Scaling out of 50% AAPL and MSFT positions. Account is up +47% in two weeks. Indexes are +4.5 ATR, good zone to lighten longs

Normal-Ear-5757

All the institutionals have got out and it's just retailers left and they're all buying the dip and shit.  Like, have you seen the intraday ATR recently? The market's peaked, mark my words.

GerardJessicap

(MBAI) is turning into one of the most active micro‑caps because the MBody AI merger is already moving forward filings done, shareholder approval secured, and the company openly confirming progress. This isn’t a rumor; the transition is underway, and they’ve stated they already work with verified Fortune 500 clients, which signals their tech is the real deal. The last time merger news even hinted at progress, the stock ripped to $4, and now it’s reset around $1.70, leaving a wide runway if momentum returns. The deal shifts Check‑Cap into a full AI automation and robotics‑orchestration company, a massive upgrade from its old medical‑device niche. Micro‑caps tied to AI themes can move fast, and the chart is showing early signs: trading near its 20‑day high, rising RSI around 59, and a tight ATR suggesting a potential volatility expansion. (MBAI) is turning into one of the most active micro‑caps because the MBody AI merger is already moving forward filings done, shareholder approval secured, and the company openly confirming progress. This isn’t a rumor; the transition is underway, and they’ve stated they already work with verified Fortune 500 clients, which signals their tech is the real deal. The last time merger news even hinted at progress, the stock ripped to $4, and now it’s reset around $1.70, leaving a wide runway if momentum returns. The deal shifts Check‑Cap into a full AI automation and robotics‑orchestration company, a massive upgrade from its old medical‑device niche. Micro‑caps tied to AI themes can move fast, and the chart is showing early signs: trading near its 20‑day high, rising RSI around 59, and a tight ATR suggesting a potential volatility expansion.

GerardJessicap

MBAI has become one of the most explosive micro‑caps on the market because the MBody AI merger is already in motion.. filings submitted, shareholder approvals in place, and the company publicly stating they are advancing toward closing. This isn’t speculation… it’s already happening..and they have stated they already have verified F500 customers. The top leading global companies don't just partner with a tiny penny stock without reason..their tech has proven itself. This is the type of catalyst that can trigger a multi‑day momentum wave the moment the final announcement hits. Last time they put out merger teaser news it ran to $4 and now is bottomed out at $1.70 The merger transforms Check‑Cap into MBody AI, a company positioned as a leader in embodied AI enterprise‑grade automation, robotics orchestration, and Fortune 500 deployments. This is a massive pivot from a niche medical device company to a high‑growth AI automation play a sector commanding premium valuations. When micro‑caps shift into AI narratives, they don’t move slowly. Recent trading action shows a textbook pre‑breakout setup: Trading near its 20‑day high on elevated volume RSI \~59, neutral but rising plenty of room to run ATR low, indicating a compressed range ready for expansion

GerardJessicap

MBAI has become one of the most explosive micro‑caps on the market because the MBody AI merger is already in motion.. filings submitted, shareholder approvals in place, and the company publicly stating they are advancing toward closing. This isn’t speculation… it’s already happening..and they have stated they already have verified F500 customers. The top leading global companies don't just partner with a tiny penny stock without reason..their tech has proven itself. This is the type of catalyst that can trigger a multi‑day momentum wave the moment the final announcement hits. Last time they put out merger teaser news it ran to $4 and now is bottomed out at $1.70 The merger transforms Check‑Cap into MBody AI, a company positioned as a leader in embodied AI enterprise‑grade automation, robotics orchestration, and Fortune 500 deployments. This is a massive pivot from a niche medical device company to a high‑growth AI automation play a sector commanding premium valuations. When micro‑caps shift into AI narratives, they don’t move slowly. Recent trading action shows a textbook pre‑breakout setup: Trading near its 20‑day high on elevated volume RSI \~59, neutral but rising plenty of room to run ATR low, indicating a compressed range ready for expansion

Legal_Concentrate_53

MBAI has become one of the most explosive micro‑caps on the market because the MBody AI merger is already in motion.. filings submitted, shareholder approvals in place, and the company publicly stating they are advancing toward closing. This isn’t speculation… it’s already happening..and they have stated they already have verified F500 customers. The top leading global companies don't just partner with a tiny penny stock without reason..their tech has proven itself. This is the type of catalyst that can trigger a multi‑day momentum wave the moment the final announcement hits. Last time they put our merger teaser news it ran to $4 and now is bottomed out at $1.70 The merger transforms Check‑Cap into MBody AI, a company positioned as a leader in embodied AI enterprise‑grade automation, robotics orchestration, and Fortune 500 deployments. This is a massive pivot from a niche medical device company to a high‑growth AI automation play a sector commanding premium valuations. When micro‑caps shift into AI narratives, they don’t move slowly. Recent trading action shows a textbook pre‑breakout setup: Trading near its 20‑day high on elevated volume RSI \~59, neutral but rising plenty of room to run ATR low, indicating a compressed range ready for expansion

GlobalLink99

First: I'd look at the sectors that are winning/trending but I don't buy the efts since they're safer but slower. Then I'd look at some of the individual stocks from either the leading momentum (rsi (\~70 or higher & adr% (5% or higher)) or the growth stock (fundamentals, revenue, etc.). Price and volume are essential and EMA trendlines matter. I often swap between different indicators not listed such as the 5-min ORH, VRVP and ATR% if there's a right time to buy, wait or avoid. There's a lot to think about when trading so I'm trying what works for me.

ReBoomAutardationism

The question you gotta ask yourself punk is this: how many ATR moves can I take getting punched in the mouth? Smaller size gives you room to ride. In a trend it leaves you space to add and still be able to get out flat if it goes pear shaped.

Coffeewin

Just closed /NQ and /ES shorts, switching long now at /NQ at 23165. The probability of a mean reversion pump is very high. Indexes are near -3 ATR and $PCALL is extremely put skewed

iamwhiskerbiscuit

The 320 SMA is a common spot for dips to reverse and we are pretty close to it. Vix is high, and a lot of people are going to short it understanding that it's unlikely to stay this elevated for long. But my biggest indicator to watch is ATR on the intraday chart with 5 min candles. If it's dropping as we hit the 320 support level ready for a bounce. If it keeps going higher and vix remains elevated, I'm shorting. No idea what I'll be doing till I see where we open, where TTM squeeze, vix and ATR are at.. but my current thesis is temporary relief rally. And I'm adding in a high likelihood Trump tweeting "it's a good time to buy" because it's the only trick he hasn't tried that's always worked for pumping the market.

NewsFailures

The framing here (market overreacted to news, fundamentals intact) is essentially a news failure trade — and it's a legitimate setup when the conditions are right. The pattern: bad news hits (CEO swap), market sells off reflexively, but the *actual* business impact is minimal or the market already knew. Smart money fades the reaction. A few things that increase the probability of this working: - **The selloff happened on low volume** relative to the ATR. Panic + thin volume = distribution event, not genuine selling. - **The narrative is testable.** If the automation moat is intact, you'd expect enterprise retention to hold in the next earnings call. That gives the trade a binary catalyst to point at. - **IV is elevated post-event.** Buying calls after a spike in IV is a headwind — you're paying for vol that may mean-revert. A call spread limits that. The risk is if the CEO swap is a symptom of something deeper (product issues, competitive pressures) that the market correctly sniffed out before you did. That's the hard part of fading news — sometimes the market is right.

kachurovskiy

So far I've identified only 2 interesting strategies, both trend-following: ADX more conservative that's supposed to go up even in sideways market, 13% drawdown in 3y simulation; ATR higher CAGR but drawdowns up to 40% during e.g. April 2025.

Hairy_Pension_821

MAs: 50-day ($11.28), 150-day ($11.97), 200-day ($11.29). That tells you the trend has been decisively bearish despite the tariff tailwind. The interesting thing is the MACD is showing early signs of a bullish crossover — MACD line at -0.86 is crossing above the signal line at -0.92. It's subtle but worth watching. If momentum shifts, the oversold RSI gives it room to run. ATR is $0.55 (\~6.8%) — high volatility for an $8 stock. Factor that into position sizing and strike selection. This thing can move 50+ cents on any given day. Key levels: support at $8.09 (basically right here), then $7.73 below. Resistance at $8.69, $9.24, and a stronger wall at $9.93 with 5 touches. For the call thesis: $8 support holding is critical. If it breaks, the tariff narrative alone isn't propping up the chart. If it holds and reclaims $8.69, that's your confirmation the thesis has legs technically. The $9.93 resistance would be a reasonable first target. Not financial advice — just the chart's perspective.

ProfessionalSyrup249

You can wheel in and out of say more stable instruments with moderate ATR but for more money you need to understand how to trade volatility that might take years

iamwhiskerbiscuit

I believe it. The 320 sma is a good spot for a relief rally. If ATR is falling on the intraday 5 min candle chart at open, I am buying spy calls.

Creative_Squash_1083

Counter-analysis: 1. **THE CASH IS IN THE BANK (AND YOUR SHARES ARE DILUTED).** The $10.5M was raised via a PIPE involving Series A preferred stock and blocks of Series B and C warrants. Raising $10.5M on a sub-$5M market cap severely dilutes the retail float. The touted "extra $20M" arrives only if warrants are exercised, creating a permanent ceiling of selling pressure (warrant overhang) that caps upward momentum. 2. **CEO IS PUTTING HIS MONEY WHERE THE INSTITUTIONS TOLD HIM TO.** In micro-cap rescue financings, a CEO buy-in is rarely a voluntary show of confidence. It is a structural requirement demanded by institutional investors. If insiders refuse to put capital at risk, the institutions walk and the deal dies. 3. **MD ANDERSON "PARTNERSHIP" IS A VENDOR CONTRACT.** This is semantic spin. MD Anderson was added in February 2026 as a clinical trial site, not a commercial partner. Biotech companies pay hospitals to run trials. It is a paid vendor relationship, not a medical endorsement. 4. **THE JUNE CATALYST IS A PHASE 1 TRAP.** The mid-2026 data for ATR-04 and ATR-12 comes from early-stage trials designed to prove safety and dosing, not efficacy. Even with positive data, Azitra is years and tens of millions of dollars away from FDA approval. This guarantees future massive dilution to fund Phase 3. 5. **THE COSMETIC SLEEPER IS A DESPERATE PIVOT.** Launching a cosmetic program immediately after a distressed financing is a standard micro-cap distraction. It generates retail hype and promises near-term revenue while cash-burning clinical trials face long regulatory timelines in the background. **The Play:** The volume is surging because warrants are being prepped to dump. The bottom is not in at $0.24. We are consolidating for the next leg down. Analysts have targets at **$2.00+** to create exit liquidity for the institutions, and retail is walking right into the trap.

Upset-Motor-2602

18-point ATR on 5-minute chart for ES is not normal.....

AlbertiApop2029

Hmm... >The recent moves with Azitra (AZTR) highlight a classic "micro-cap biotech" pivot. The company is essentially trying to survive a cash crunch while maintaining its long-term clinical goals. >Here is a breakdown of what these developments actually mean for the stock's outlook: >The Funding "Lifeline" (The PIPE Deal) >The $31.4 million financing deal is a double-edged sword. >The Good: It solves the immediate "going concern" risk. Before this, Azitra had only $2.1 million in cash against an $11 million annual burn. This injection provides the runway needed to reach their H2 2026 clinical data catalysts. >The Bad (Dilution): The deal involves convertible preferred stock and warrants with an exercise price of $0.123. When these convert, the number of outstanding shares will explode. For current shareholders, this means their percentage of ownership will be significantly reduced, which often acts as a "ceiling" on how high the stock price can climb in the near term. >2. The Cosmetic Pivot: Faster Path to Revenue? >Biotech clinical trials take years. By moving into cosmetic proteins/peptides, Azitra is attempting a "shortcut" to revenue. >Market Impact: Unlike drug trials, cosmetic products don't require the same multi-year FDA gauntlet. If they can successfully partner with a major skincare brand in 2026, it would provide non-dilutive cash (revenue), which the market would likely view as a major de-risking event. >3. NYSE Compliance: The Clock is Ticking >The notice of non-compliance is a regulatory "yellow flag." >The Requirement: Azitra needs at least $6 million in stockholders' equity (they were at $3.8M at year-end). >The Impact: They have until April 1, 2027, to fix this. While they aren't getting delisted tomorrow, the stock will remain under a "compliance shadow." Investors usually want to see a clear path to that $6M mark—likely through the recent funding or a future reverse stock split—before they commit long-term. >4. Upcoming Technical & Clinical Catalysts >From a trading perspective, keep an eye on these specific windows: >Mid-2026: Topline data from the first cohort of the ATR-04 Phase 1/2 trial (cancer-related skin rash). >H2 2026: Topline data for ATR-12 (Netherton syndrome). >Technical Levels: The stock recently bounced hard off its 52-week low of $0.10, reclaiming levels near $0.28. If it holds above its recent support of $0.18–$0.19, it suggests the market has "priced in" the dilution for now.

AphexPin

SMA, ATR, trendline, etc..

Namnikoo

there's a great guy on X called Saty (you may have seen him before), he has a free indicator called Saty ATR levels, which basically calculates the expected range (ATR = Average True Range) based on the selected previous trading period's range (Day, Week, Month, Q, Y). I find it's one of the best tools for selling bear spreads at the top (+1 atr) or bottom (-1 atr) on a gap n go situation, as probabilities work in your favor (going beyond +/- 1 atr level is very low probabilities). His X account also posted some stats regarding the different (fib based intermediate) ATR levels. helps with picking strikes and deciding direction. But the highest probability wins come from spreads at 1 atr.

cfadeveloper

Supertrend has become my main indicator. I use it to confirm the trend (ATR-based) and then look to buy dips while it stays bullish, and only flip the plan when it reverses. It’s been most useful to me in clear trending environments and more prone to chop in sideways markets. Because I didn’t find many tools/brokers that supported it well, I ended up building my own practice tool to train on it, then coded a custom indicator in my broker’s platform to use it day to day. Curious if anyone here uses Supertrend (or has a better alternative) and what settings/timeframes you like.

dagroup

Great job! You've received some excellent advice thus far. Here is my suggestion; Find only one or two and get to know them well. This will keep you from over trading and not freezing. These should have lots of traders involved, decent daily ATR, and enough OI in every contract with no more than $1 between contract levels. This allows you to get in or out quickly. After you've found these, observe them for at least 30 days on multiple time frames so you can spot the nuances and more importantly when they change (not price reversal). hope this helps.

Smort_poop

You were shilling ATR before you edited your comment

CatchAfilM

Except IONQ which could be worse, or not, but might be a volatile stock with big ATR move. Don't get your head worried by owning Google and Amazon. These two value companies have to grow, and by 2027 they both will break their new all time high. If you are able to, you might exit your IONQ position by the end of year to harvest tax loss if needed.

SeaEnvironmental756

Spoken like someone who doesn’t understand options, and also doesn’t understand futures.  Get ready for surprise margin rate increases and stop slippage.  With the ATR where it’s at, you better have a BIG bankroll and nice edge to mess with futures in this environment. 

UndergroundHQ6

Idk gang maybe your calls wouldn’t have expired worthless if you didnt choose a strike outside of the ATR14

dagroup

Good thinking as you get to know it better. Mar options were reported high, but earnings isn't until Apr. Something afoot? Looked at May ITM calls for a possible debit spread, but it's not even 1:2 The ATR is down to $1.15. So how do you plan on trading this? day trades are SPY, swing is MAGS.

LuckyPlaze

Posts like this are ridiculous. It’s already bounced back and today is well within ATR.

Joe_From-Kokomo

It's Sunday. Set up some reasonable Stop Losses, so you don't lose all your portfolio. There is actually a formula using something called ATR, but, in reality, you can just use a calculator and pick 5% 7%, 10% or 12%, whatever sacrifice you can tolerate. Be aware that Stop Losses can trigger on the open, and at a lower price than the one you pick. Still, no one knows what Monday will bring. I am long USO and HAL myself. But, I have a diversified account. It is possible most oil stocks will go up, ironically, as we will all have to pay more. Who knows.

skarfbeaulonee

Today is about the flattest I've ever seen ATR on the open. That stands for average true range and it's a measure of volatiity. In other words, from the open ATR was telling us today could be an email.

memmolemmo

It is a highly regarded SPX credit spread strategy using 0dte options volume data and Average True Range (ATR).

Backtester4Ever

Regarding your question about better frameworks than moving averages, I've found that using a combination of different types of indicators can be beneficial. For example, you could use a trend-following indicator (like moving averages) in conjunction with a momentum indicator (like RSI or MACD) and a volatility indicator (like Bollinger Bands or ATR). This way, you're not relying solely on one type of signal. In my experience, WealthLab has been a pretty solid tool for backtesting these kinds of strategies. It allows you to design and backtest a strategy with a variety of indicators and conditions, which might help you refine your entry logic. Just remember, the goal isn't to catch every move, but to catch the moves that offer a good risk/reward ratio.

Kickrussiaout

Unless I missed it, you did not mention how you decide on the stock you’re going to trade. The only thing I would add is instead of selling when your up, you could periodically roll your position for a profit. That way you’re minimizing risk and not missing out on potential gains. I buy in the money options around 70-80 delta. Then roll them around the 2ATR line. Usually on the second roll I have all my investment back and still holding the position with zero risk. Good job though. 95% of traders loose 95% of there money in there first year. So you did good. lol.

charlie-todd

Semi-Conservative Scanner Delta: 10–15 POP: 70–80% DTE: 25–40 IV Rank: > 20 IV Percentile: > 30 Spread: < 5% Volume: > 1M Open Interest: > 300 ATR%: 2–4% ROC: 0.5–1% No Earnings: ±10 days Aggressive Scanner Delta: 12–20 POP: 65–75% DTE: 5-35 IV Rank: > 30 IV Percentile: > 40 Spread: < 8% Volume: > 500k Open Interest: > 200 ATR%: > 3% ROC: > 1% No Earnings: ±7 days

SeaworthinessRight26

After 100k I would never suggest anyone doing options. Or if not even 100k from 1k I would use laddered buy strategy using ATR of any stock, market history is the witness any stock that had declined (tanked) always surged as well, so when it’s going down, don’t buy at once, always do a laddered buy, like if it’s at 100 and the ATR is 2, put a limit as per your exposure and buy at 98, 96, 94, 92 and if the price is above your average cost it will definitely be, you sell at whatever pc you want to, but tldr don’t do options unless you are a cousin of Nancy pelosi or a good friend with Bill Ack.

Tight_Edge_5065

I totally get the anxiety. Between the "Double Top" talk and the French authorities raiding X's offices (which definitely adds to the "Elon Risk" premium), it’s easy to feel bearish. However, if you look at the medium-to-long-term quantitative data, the picture is more about consolidation than a guaranteed "steep decline." I’ve been tracking some analysis from WhaleQuant, and their latest technical breakdown (as of Feb 4, 2026) offers a more nuanced view: Volatility Compression: TSLA isn't necessarily "dying"; it's in a "Squeeze" phase. The price is currently about 1.9 ATR below the adaptive KAMA baseline ($439). In quant terms, this usually means energy is building up for an asymmetric move once the compression resolves. Trend Score: Their system gives it a 40/100, which means the trend is currently "Indeterminate." While the long-term trend remains bullish, the short-term lacks confirmation. The $400 Level: You're right that it's hovering around $400. WhaleQuant notes that recent price action shows limited conviction and low participation, meaning neither the bulls nor the bears have taken control of the narrative yet. My take: The news about France and X is noise that affects sentiment, but the "Double Top" only confirms if we see a high-volume break below structural support. Right now, the data suggests we are in a "Pre-Expansion" phase. It’s a waiting game to see which way the volatility breaks. Would love to hear if anyone else is watching the ATR or KAMA levels on this.

SubstantialAffect835

People that buy calls at the top of a market that is at or near all time highs, and the market goes down less than half a point, and then post that the market is tanking make me laugh. What would you do if it actually tanked? Like 500-1000 basis points instead of 48 basis points well inside of its ATR?

JohnGaltIsComing

Investing (buy and hold) versus trading (buy and sell, buy and sell, etc.) is fine, IF nothing changes with the company, the economic environment, the world order, or any one of thousands of other things. I buy because of a good track record, solid fundamentals, etc. - but things change - so when I buy, I use TRAILING STOP LOSS PERCENTAGE orders - they are described elsewhere, but setting the trail amount (a percentage) can be a challenge for some folks - there are many, many metrics to use when setting a trail amount, but what I've come to like is using the ATR Bands (the lower band amount) to calculate a percentage and use that for my trail amount percentage. My brokerage (Fidelity) uses these traditionsl TSL% orders, but some brokerages have two-variable TSL% orders, where you specify a percentage-based trail with a trigger price or limit. These platforms (there are only a few of them) allow traders to set a trailing percentage alongside a secondary variable (such as a maximum loss amount or specific activation price) for improved risk management. 

450BrapBrap

It’s really nice. It’s live and will change green to red on the rvol showing you whose volume is in control. On TradingView it’s “Volume Average / Current Volume / ATR by dalozification”

Emotional-Breath-838

Nope. I’m not that sophisticated. I try to use the ATR method to set the trailing stop loss. I always choose a percentage rather than points. As far as upside goes, I’m not one of those guys that sees over bought and unloads or trims. I can barely spell oscillator, let alone manage it.

Minimal_Lobster

Big losses usually aren’t about being “bad at trading” — they’re about risk and entry location compounding at the same time. What helped me reset was shrinking size enough that I could actually follow rules, not emotions. I stopped trying to predict and focused almost entirely on where I was entering relative to value (VWAP / structure), and how far price already was in ATR terms. Fewer trades, smaller size, and only taking setups where invalidation was obvious made a bigger difference than changing strategies. Once the downside stopped hurting, decision-making improved fast. Slowing down isn’t a step backward — it’s usually the inflection point.

Minimal_Lobster

For me, the breakthrough wasn’t finding more data — it was deciding what to ignore. Options has infinite noise, and most of it doesn’t help with entry quality. I trade mostly SPY, so I stripped things down to a short checklist before I even look at Greeks or spreads: • Where is price relative to VWAP? (am I entering near value or already late?) • Is this a pullback or extension? I avoid trades when price is stretched in ATR terms. • EMA alignment / structure first, options details second. If price location and structure aren’t right, I don’t care how attractive the premium looks — it’s usually a trap. Once I started filtering that early, I stopped needing multiple platforms just to convince myself a trade was “reasonable.” Fewer trades, clearer yes/no decisions, way less mental load.

More-Attention-9721

Yes, a .70 delta is always ITM. You won’t get the same return on a $5 move as would with an ATM call due to delta expansion and such, but success rate is better for me. There’s really no strict criteria, it’s more so a feel at this point if there’s say 10 names in a similar pattern, it’s more so just knowing the names and charts looking back. Again, I need the liquid options, preferably weeklys and a high ATR of like $4+

More-Attention-9721

You don’t need huge moves. A pop to new highs with a strong delta in a higher ATR names is all it takes. A lot of the names market surge produces aren’t very optionable or very low liquidity so disregard those. I have a few scans that are similar but surge still has the best results in my opinion.

More-Attention-9721

I mean that’s how I started. It was 1 contract then 10 and then scale as you go. I often do more than 100 now but the main thing is taking 100 for $1+ in these high ATR names. It’s really not that difficult if you know what you are doing

More-Attention-9721

My whole strategy right now is buying 100 contracts, next week out and ride them for $1-2+. It’s an easy 10-20k. Get the high ATR names, grab a delta of .70+ and look for strong relative strength approaching new highs. I’m very successful, but hate saying that. Market surges “near pivot” scan is a great way to find some of the lesser known names, otherwise I’m trading the big boys and have been for the last 17 years. Ask any questions

CatchAfilM

This isn't a dip at least for $ASTS. It's ATR at $10.40 and on Wednesday it closed losing $9. Just hit a new all time high this week.

buppiejc

Open a chart. Switch to the daily time frame. Add the ATR (Average True Range) indicator. Whatever that says, subtract 50%, that’s how far OTM you’re allowed to go. Example. TSLA has a 15.16 ATR. It’s currently trading at 433. So, I’m allowed to take a 440 call, or a 426 put. If the play is profitable, and it runs more, great, but this is the conservative approach.

Quick-Adeptness7105

Based on ATR?

deadfishlog

Trailing stop % based on 2x ATR after you are profitable let the machine decide

ddripper

Call me crazy but I only trade NVDA. No other stock. I've noticed this recurring pattern -- whenever the largest bid (currently at 180 with 221k shares) outshines the largest ask (currently at 186 with 66k shares), you know shit is about to go down. Maybe not today as it already exceeded the daily ATR, but by end of this week -- unless some positive catalyst pops it up.

ddripper

I guess I'm wrong. Seems like the MMs have no intention of bringing the price down ... yet. Might hit that level tomorrow or day after tomorrow. The level has fattened up quite a lot today by around 80% (221k shares sitting at 180 bid as of now vs around 140k back when i wrote above comment). Might hit that level tomorrow (based on daily ATR), assuming no positive catalyst pops up.

Upset-Motor-2602

I stay away from any stock, even a good one, that is overextended by more than 4X its ATR from the 200 SMA.

SAG2025

Thanks. The theme is: growth stocks, aggressive stocks, and technology stocks. I mostly focus on tech stocks. I known their ATR is high, but so is their return. They can be volatile, but I wait patiently to get in at the right time. This is the sector that I have been trading for a very long time, and I feel the most comfortable researching and trading. Happy trading everyone!

the_Q_spice

Supply chains are all about lean operation. Spending hundreds of thousands of dollars per year on LiDAR scanners and maintenance is literally the antithesis of how supply chain and logistics companies make money. Similarly, the giants of the SCL industry *hate* being reliant on monopolies and will literally hire companies to develop products just for them so they can remain diversified enough to avoid disruptions. A huge example of this was a few years ago, FedEx hired Cessna to literally design an entirely new type of airplane just so they didn’t need to be reliant on ATR alone.

SeaAndSkyForever

Could you give more insight on what you mean by "volatility likes to cluster" and how that relates to ATR? I'm unfamiliar with that indicator.

bush_killed_epstein

Volatility likes to cluster. Take a look at Average True Range on the daily timeframe. I like to use a simple 20 day (which corresponds to 1 calendar month) ATR. I also like to look at what I would call ATR Rank, which is (duh) just like IV Rank but with ATR as the input. Below is a snippet from my thinkscript code for this. For rank length I use 252, corresponding to 1 calendar year. def hi = Highest(natr, rank\_length); def lo = Lowest(natr, rank\_length); plot rank = (natr - lo) \* 100 / (hi - lo); I have found it incredibly useful as a filter. A simple rule with decent results: if ATR Rank is > 50 don't sell vol. Whereas naive options traders often try and sell vol on high IV Rank names (based on the oversimplified notion that it is "overpriced") I have actually found that selling vol has a much higher probability of win when both IV Rank and historical realized vol rank is low.

AndvsOr1956

Weekly Diagonals give you protection with short ATM however also check weekly ATR and set price alerts at trade setup to be alerted of price movement in either direction. You may want to roll if you Price alert is exceeded. Practice practice practice before real $$$$$

A_Dragon

So you like buying things extended more than 13x ATR from the 50DSMA when historically in every single case they behave exactly as I described? All the real traders are looking for the parabolic short opp here.

Bowmaster1975

Scalping contracts 0DTE with TSLA have an 18 ATR it works.

Bowmaster1975

I do 0DTE and rarely hold overnight. With TSLA have around an 18 ATR it works great. Basically scalping contracts.

Background-Dentist89

This has been a good stock. I own it. But it is a difficult space. Actually CRWV is rated the best as a data center. But it does not matter if your the best and your buried in debt, I also had ABIS. I think the near future does not look good. Having said all that, set a trailing stop loss at 7% and let it rip. I never get out until I am stopped out. Gets the emotions your feeling out of the equation. You could use the ATR as your stop as well. That would make it much more accurate.

Lucky_Total_278

Netflix ATR is 3.71, you can sell the December 19th $96 calls for $110 each, 38 of them brings in a bunch of bucks today.

Scannerguy3000

Great question. Somewhere back in my comment history I've written this out a dozen times, so I'm not going into long detail, but you hit upon the key. I use Barchart (I think it's $20-30 a month) and search using their "naked put screener" which I have highly modified using ChatGPT over a period of 11 months. Basically I'm looking for high premium balanced with safety. 200 day EMA slope over 0 gives you companies that aren't declining. OTM Prob, delta, %BE(bid), RSI, all play a part. Then I dump those results into my spreadsheet as a second stage screener. I export Price/ATR among other things. Then I have helper columns calculate Expected Move, then ATR/EM. Then I weed out anything over 1.0 - that means their actual swerving all over the road is wider than the road. Then I sort by each of the major columns and trim the bottom rows. I've got an aggregate Score column, and Safety score column, and use those as well. Then I maintain a lot of diversity and I'm careful with my position size. I don't usually do more than 5 contracts, or less than 2. (500 - 200 shares). Historically, I've just picked whatever tickers are hot. I DGAF about holding them long-term. I'm hunting for premium, not buy and hold. I see equities as a liability. At best, they can grow slower than my premium income. At worst, they can drop overnight ... cash doesn't do that. However, I am starting to collect a few high dividend payers and I'm experimenting with a system to CSP and CC on those, as well as reap the dividends and the continual ACB reduction, along with their appreciation over time. I'm not sure if this will outperform my premium engine, but I'll measure it for a while and see if it makes sense.

Informal_Bee420

I’ve learned from algo design to use ATR

failure_as_a_dad

You need to have parameters that you abide by at all times, and follow them all the way through. What was your basis for opening the iron condor? Were to watching RSI or ATR? Were you expecting choppy price action? Whatever it was, you have to decide on ranges that you can tolerate, then make the decision to stay in if your position stays in that range, or get out. I won't enter a spread unless all of my parameters are in place. If something goes awry, I have stop losses in place to keep me from losing all of my collateral.

erstwhile_estado

I guess that explains why I've been stopped out of every trade even when I set my window to twice the ATR.

dbasea

BB + Stoch RSI can work, but cut false signals by adding higher timeframe trend/structure (HH/HL or 200 EMA), a volatility/volume check (ATR/ADX + OBV), and strict journaling with stops beyond swings; you can find more information at mr-profit com.

Terakahn

No. Hedge funds will often go stop loss hunting if there's significant volume around a certain price, but typically institutions don't care. Most retail investors are not day traders. They couldn't care less what a price does intraday. Prop firms care. But retail doesn't. Also, if you're buying a stock that's so volatile that you are getting stopped out by a single day of movement, regularly. You are not the norm. You're probably trading garbage. If you specifically are getting stopped out on volatility intraday, you need wider stops. Or trade lower beta stocks. Or lwoer ATR stocks. If a stop loss triggered at close, and you can set up orders this way btw. You would get fills way way below your stop. No broker is going to 'reserve' a price for you. You can set an order to fill at end of day if its below X price. But you can't get that specific price unless you made a deal with your prime broker for that price. Institutions do this and get a guaranteed vwap fill. This is not the same as a stop though. Why should we be on the same level playing field? You think you get access to the same information that a bank does? Or that a hedge fund does? Institutions don't give a shit about retail volume. If you had any idea how small retail is vs total volume you'd understand why. if you legitimately think the market is tilted against you, then you very likely don't understand the market very well.

ErichPryde

Avol and ATR only. 

Puzzleheaded-Bug6721

Most of the best traders don’t, indicators lag to much to be of any realistic use. The only helpful one in my book is ATR. Everything else is ass, and is just bad abstraction of price action anyways. Understand market structure is the best thing you can do as a trader

Snoo68013

How do you find weekly ATR

zoomin1098

pick your poison, boys. and learn the ATR ffs.

More-Attention-9721

I feel like for an options sub, these people are pretty off. There has been heavy put selling at the 600 level, and that typically acts as a floor. Let it base a bit here, and we will eventually head back to that 670 area. Not sure what your buy in was, but you have plenty of time to make some if not all of it back. META has a current weekly ATR of 45. It could easily get back to where you need it. Yes it was slammed after earnings, but that’s par for the course. I’m actually about to enter some Jan calls here and add on any little dip under 610, stop at 590.

twi1i96tr

Okay... now I "think?" I get. Takes a while for my smooth brain to compute... (light bulb!) So you are looking for Stocks where the ATR is greater than the EM! and the ratio is that the ATR is greater than the EM. Gothca... Do you have other criteria such long term uptrend?... above certain MA's?... Down so much from the highs and turning?... Lower part of BB's? etc. or are those "sort of" proprietery things? THANK YOU again... Twilighter.

Scannerguy3000

Let me clarify. I’m running a screener to pull 150-200 tickers. This isn’t a one ticker analysis. I dump the Barchart CSV into my spreadsheet where I already have my helper columns to calculate Expected Move, and ATR/EM. That number ranges for every ticker from low (.30 for instance) to high (3.5). I throw out every ticker where it’s over 1. Then I pick my play from the rest. Anything over 1 means the True Range is greater than the Expected Move — i.e. It’s likely to pierce right through your strike.

twi1i96tr

THANK YOU... for the prompt and thorough reply. I am assuming EM is Expected Move. A simple "ballpark" way to get that is using the ATM call and put premium added together for the expiry date in question. As far as the rest of your reply goes I am TOTALLY lost. Would it be possible for you to give a specific example on a trade you are doing or have just done??? Show the approx calculation for each segment. I use the EM all the time. I just take the call and put ATM premium for that expiry date and add and subtract it to/from the current market price. I understand the basics of ATR but don't understand how you are using it. Thanks again... Twilighter.

Avezina

Yes, but not everyday is a good day for such instruments. You can make money fast in the last hour of trading day when markets still move and options are cheap. R/r ratio is astonishing. Keep an eye on ATR indicator, choose high volatility days and avoid low ATR days unless you sell options.

Scannerguy3000

I used ChatGPT to learn about to and implement it. I use Barchart as my primary screener, and you can output ATR as a column (create your own customized output). You’ll need to add some other data to calculate EM (I’m not at the house, so I’m not looking at it right now). Then the GPT can tell you how to calculate Expected Move from your outputs, then ATR/EM. Once you have that, you can cast a wider net (I loosened up a lot of my other filters) because you’re going to throw 2/3 of them away. Once you dump your CSV into your spreadsheet that calculates the EM and ATR/EM, sort that column and throw out everything over 1.0

twi1i96tr

Hello Scannerguy3000... How do you implement the ATR part into your strategy?... Twilighter.

Scannerguy3000

I’ve explained it dozens of times. People telling me I’m lying / or “everybody can win in this bull market”. I sell CSPs on deltas below .25, and I use a very finely tuned screener for high IV, and high safety, and I keep improving it. ATR/EM is the newest thing I learned and integrated. My yield has been consistent for about 10 months. It’s literally not hard. Anyone can do what I’m doing.

Scannerguy3000

These questions are too specific. There is no magic delta or magic time. You need to understand what each means, and what the trade-offs are for moving up and down the scale of either. That said, I’ve been increasingly moving under .24 delta, even to sub 20s. And almost exclusively weeklies. But I’m about to start adding ATR and BE vs Expected Move, which means I may loosen up the other two.

thatGUY2220

I respect your bold move but likely paid a bit too much in IV and did not give yourself much margin for error. Any sort of downward move would absolutely crush these even if stock price does bounce back. Right now you’re about 37 points from break even. Meta could easily get back to that level by expiration given the way it trades and ATR. However, I am not sure the right answer. I am long META over all via shares + long dated call calendars that took a hit in value. I would love to see your calls become profitable but count myself as rather pessimistic for the next couple weeks.

Tyrade-15065

Indicators for: daily volume higher compared to average volume; price change greater than average true range (ATR); price at/near 52-week low; price at/near 52-week high; some measure of news articles today versus average (or just a count of articles, the more of them the better).

DetailRe

You need to look at the ATR and base it off of that

tomsacies

The fly you are looking at might be cheap for a reason, as you are buying a very narrow range. The ATR on the ES is above 100 points for the last week, and you are betting that the ES will finish inside a 45 point range in exactly 7 days. Since most of the value comes from the last day of trading, you are betting on the probability of hitting a very tight price range at a very specific time. Also, it is practically impossible to open a fly for a credit, as arbitrage doesn't allow you getting paid for taking on no risk. A credit fly is something you might find by taking the mid-price on instruments with very tight bid/ask spreads, like SOFR futures. Where it's not possible to get a fill on all legs that is better than the bid or ask (example mid-price on all legs), so it is important to always take the correct price for calculating the fly, and it will always be for a debit.

davidsidesmusic

Avoid the temptation to sell spreads on 0DTE indexes like SPX, or ETFs like SPY. Just don’t do it… Stick to stocks and ETFs with longer dated periods, like a 30 - 45 DTE. Keep in mind your position sizing. When you get some wins you’ll be tempted to increase your position in some trades that go beyond how much you should be risking given your account size. Stick to a small size despite the win streak. With spreads, one max loss could wipe out a long series of gains. Some people will make it seem like spreads are easy money if you just go way out of the money. It’s not a revolutionary idea, many have tried that and gotten burned because they weren’t careful or didn’t manage their trades once they went against them. Learn to manage them by trading in a paper account. Also, “rolling” will be your friend as long as it’s done before the spreads go ITM. At least initially (and maybe perpetually), stock to stocks with somewhat a low to moderate volatility. The higher the volatility, the higher the premium - but also the wider the movements. For example, I sell spreads on V which has an IV of only 29% and an ATR (average trade range) of just 6 and I’ve made good money just selling spreads on them with my short legs at 5 delta. Oh and one last time in case you missed it earlier: position sizing, position sizing, position sizing. Don’t risk more on any trades than you should given your account size. I sell Iron Condors on V and I only risk 1% or my account value each time. You don’t have to be that conservative, but just pick a risk % assuming a losing streak, not a winning streak, then stick with it. I know that in my case I’d have to max loss a lot of times to do any real damage to my account. Good luck!

sleepyHype

I feel your pain. I subscribe to Unusual Whales. I look at option flows and try to find setups from high-order trades. I bought a bunch of options the first week. Increased my portfolio by almost 8% in a week. Told friends, and we made some money. But then I got greedy. The stock ran up 15-25% and I held, but they dropped, thinking they would come back, and I lost. One trade cost me 3% of my portfolio on a company I had never heard of. Just last Friday, I saw a bunch of orders for CIFR, almost a million in orders from 1 trader. Then a couple of other orders. Did the DD and I sat that one out. Not terrible stock, but I wanted an A+ setup. Fuck, up 17% today! My point is, I’m learning to read ATR & watch order blocks. Take the small wins and don't buy stocks like BYND, POET, or even RANI. They run, but they will kill your portfolio. If you do, take the small wins. Cut your losses fast. You lose 1 big, and it takes 20 winning trades to make up for it.

ImportantProofAcadia

That was just specific to how I’m using an algorithm with ATR exclusively, but from your interpretation now I actually would like to cluster indicators in addition to testing different features. I have been generally just looking for convergence of signals from the different indicators, but that’s a new concept to try out

kukugege

IVF is actually more volatile than FEMY, both have a 14-day ATR, but IVF’s is 0.09 higher than FEMY’s according to Finviz. Bottom line: volatility is normal in this space, and both have solid fundamentals.

Coffeewin

[Up over +$600k on GLD debit call spreads and /GC long futures. I think its time to finally close the position.](https://i.imgur.com/cWXx5Dh.jpeg) Been holding /GC since 3448, could be my best futures trade of all time. I already sold 1/3 of the GLD position in the past few days but it's currently at 7+ ATR, looking frothy

ImportantProofAcadia

For the first couple of trades I was going all in, but I am scaling that down and adding in the stop losses after I had the big drawdown yesterday. Trend detection is mainly from a k nearest neighbors indicator and a k means clustering using the ATR. Going to work on developing several more like HMM‘s.

_WeDoNotSow_

Lol dude...use your brain One down day doesn't mean shit But one down day when SPY and QQQ are both green is bad And one down day when it was up around $26 and dropped to $22 is fucking bearish...even for a volatile stock with a large ATR, a 20% drop from high of day to where it is now is nowhere near bullish The only thing that is looking like a positive is that the 8 EMA has held...if that breaks, this is tanking more

Turbulent_Cycle_7757

Not just the risk total, but how it's calculated. $200 risk using 2 ATR or the 10 EMA will result in smaller positions, but with more cushion for fluctuations. You also get more positions open to be fully in the market, which helps diversify the account. The main downside is that if you're fully in and the market tanks, you're going to take it on the chin no different than of you were fully in one stock, so be aware of how much total risk you have on

Ok_Reveal_6216

wait until the VIX is extremely low, such as if its held below 16 to 17 for months and months. Listen to analysts, when talks about the economic cycle hitting its later bull run stages are happening, consider that (im talking about the bloomberg economists on like page 10 of the site not CNBC people), then find if realized Vol, ie the ATR, has been consistently low for a long time. In that case, taking .01-).1 % of your portfolio depending on risk tolerance and adding a weekly, or even daily, deep OTM put long, looking to purchase for 2 or less cents or 5 for the SPXW, and holding them. Trade as usual, then, when the blowout occurs and Volatility jumps, such as last friday, not only are your open trades protected but you make p/l positive even when you time the market wrong. its called convexity

porkbellybutt

Chiming in: One of my favorite systems is Saty ATR and Ribbons with Volume Stack. Similar to Ripster ema clouds but a bit more in depth. Saty is super smart and generous to share those for free on TradingView. Take a look

80delta

Well, my stops are "tight" for 90dte, but I would still use the same criteria, just on a different timechart. The fluctuations are similar. I use the 1d chart and a 10EMA stop loss or 2ATR, whichever is less. With 90dte, I would use the 10EMA and 2ATR, but use a 1W chart. Using candlesticks, there is about the same amount of periods for the 90dte on a 1wk chart as there is on a 14dte 1day chart. It works on all timeframes. I'd use the same 10EMA or 2ATR on the 5min or 15min charts when day trading. But, I've been getting away from that lately just focusing on swing trades.

h0rchatapapi

It’s easy to just say “buy low, sale high” The people I learned most of what I know often say “once it’s in the news, you’re too late”. Reddit is also a poor source for the most part, especially when you’re not confident. With trading stocks, you’re not really going to make money unless you’re holding for a few days or weeks at minimum! Trading options is really lucrative but, once you’re familiar with charting and balance sheets it gets a lot easier. What prompts are you using within ChatGPT? Are you familiar with EMAs or RSI? How do you chart? There isn’t one set way to make profits, and there are a myriad of tools to get there. You also have to factor in how often you’re willing to sir in front of a screen, watching everything move. Day trading while working a typical job gets hectic at times, but it IS doable! I use technical analysis, most of time it’s finding set ups through various sectors or sticking to SPY or QQQ options, because they both high volume daily. Market structure and movement play a big role in what I chose to trade. The indicators I use are EMA, volume, ADR/ATR, in conjunction with candle stick patterns. I’ve had my moments and successes off and on since 2020… you can look for stock screeners online, or even on charting sites. Recently, I’ve gotten back on the grind. I stopped for a while because I wasn’t in the right space mentally. Just be weary of people selling you bullshit courses or discord subscriptions. There’s alot of info on investopedia, youtube, and individual brokers have an education section. If you choose to pursue options, I STRONGLY recommend paper trading first to build confidence. Give yourself grace and time, it’s not easy at all! Lol Hope this can be of some help to you, OP, or anyone who needs help. TLDR: Find a method that involves technical or fundamental analysis, use screeners, avoid advice from reddit, give yourself time to learn.