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Why Average True Range Answers One Trading Question:“Is There Enough Room for Risk–Reward?”
Many traders focus on entries, indicators, or news — but ignore the most practical question in trading: Is there enough room for risk–reward? The Average True Range (ATR) answers this question better than almost any other indicator.Not because it predicts direction, but because it measures opportunity . In day trading and swing trading, ATR tells you whether a stock can realistically move far enough to justify the risk you are about to take. What Is ATR (Average True Range)
Paul Nawrocki
3 min read
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