What stop-loss price should I use if I base my stop on the stock's ATR?
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Your Result
Fill in the fields on the left and click Calculate to see the stop-loss price, stop distance, and risk per share for an ATR-based stop.
Visualizing It
How this is calculated
Stop distance in dollars equals the ATR value multiplied by the multiplier you enter (ATR × multiplier).
For a long trade, the stop-loss price equals entry price minus the stop distance. For a short trade, the stop-loss price equals entry price plus the stop distance.
ATR (Average True Range) measures how much a stock typically moves over a given period, commonly 14 periods, and is available on most charting platforms. This calculator does not calculate ATR itself, you provide it as a dollar value.
Basing a stop on a multiple of ATR is a common way to give a trade enough room to move with its normal volatility instead of getting stopped out by ordinary price swings, while still keeping the risk per share fixed and known in advance.
There is no single correct multiplier. A wider multiplier reduces how often you get stopped out by noise but increases the dollar risk and reduces how many shares your risk budget allows. A narrower multiplier does the opposite.
Once you have a stop-loss price, use the Risk/Reward Ratio Calculator to check the trade against your target, or the Position Size Calculator to see how many shares your risk budget allows at this stop distance.
Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter. It is not financial advice and does not guarantee any trading outcome. ATR is a historical volatility measure, not a prediction of future price movement, and a stock can move beyond any stop distance at any time. Trading involves risk of loss. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. We do not guarantee this tool is error-free or suitable for your situation. Always verify results independently and consult a licensed professional before making any trading or financial decision. You could lose some or all of the capital you trade with.
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