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For example, obtaining a two day ATR or ATR (2) is not sufficient to provide you with a reasonable indication of that security?s normal daily movement. Whereas using at least 10 days in the average calculation, or an ATR (10) would provide you an indication of that security?s daily movement over the last 10 trading days (2 weeks). The ATR is usually expressed as ATR (X) where X is the number of days used in the calculation of the moving average. The number of periods you select to obtain the average would depend on your application. One application of ATR is that they can be used quite effectively for setting exits Cheap Men's Nike Air VaporMax 97 Black Reflect , or stops. Using ATR for exits allows you to tailor your stop to the security you are trading. For example, if you used a standard 10% stop, this would be a tighter stop (i.e. closer) for some securities than for others. 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