We are committed to researching, testing, and recommending the best products. Therefore, behind the scenes, the indicator is calculating the current period ATR, multiplying it by 3, and then adding it to the current price in the case of a downtrend, or subtracting it in the case of a downtrend. To trade, tap on or search for any stock. The Average True Range Trailing Stop indicator is great for traders who need help spotting the trend, or need an indicator that can help them choose in which direction to place trades. This indicator simply warns you that a larger than average pullback has occurred, and some caution is warranted. Average True Range is a volatility measure which assigns a value based on the high of a price bar minus the low, or the high or low minus the previous close, whichever value is greater.