True Range vs Volatility-Based Stop

Quick comparison to help you distinguish these two crypto terms.

True Range
intermediate
technical_analysis

True Range is the single-bar volatility measurement used as the input for ATR, calculated as the largest of three values that capture total price movement including gaps from the previous close.

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Volatility-Based Stop
intermediate
technical_analysis

A volatility-based stop is a stop-loss level calculated using a volatility indicator such as ATR to position the stop beyond normal market noise rather than at an arbitrary fixed distance from entry.

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