Lessons › Risk and money management › Stops that fit the market
World 5 · Risk and money management · lesson 8 · level 3
Stops that fit the market
A calm market needs a short leash and a wild market needs a longer one, and ATR tells you which is which.
What it is
After a very calm stretch, one big candle broke above the recent range. Calm often comes before a storm.
Your task in the app
Volatility was very low. Buy, sell, or wait?
How often it worked
| Market | Times found | Target first | Stop first | Went nowhere |
|---|---|---|---|---|
| India (NSE) | 105 | 36% | 63% | 1% |
| United States | 121 | 36% | 63% | 2% |
| Japan | 79 | 51% | 48% | 1% |
| Crypto | 1,520 | 39% | 59% | 2% |
| Forex | 133 | 44% | 55% | 2% |
| Commodities | 52 | 56% | 44% | 0% |
Counted on real past charts by the Trading Class research engine, 2,010 cases in all. Past odds, not a forecast.
Read more on the ATR expansion up pattern page.
Goal of this lesson: Set stop distances with ATR so they match each market's normal movement.