Profits & Stop Loss - Using ATR indicator

On all pairs you trade you should know the daily ATR volatility and if scalping or day trading that time frames ATR too. The higher the daily ATR is the more volatile the pair, but easier I think to scalp or day trade with.

Rules to use ATR indicator for stop loss are:
1) Find the candlestick or setup that you would like to trade from, (example: 1 hour candle bullish pin bar on GBPCHF chart)- ATR is 12 pips
2) then times it by 1.5, so total would be 18 pips for stop loss
3) this will cover both most volatility of price action and spread ( low or very little getting stopped out on trades)

rules to use ATR indicator for profits are:
1) 1:1 risk reward would be 18 pips
2) 1:1.5 risk reward would be 27 pips
3) 1:2 risk reward world be 36 pips

Note: All three profit targets are noted (by black ARROWS) on 1 hour example chart of GBPCHF

I do not keep ATR on my charts, but just glance at it to set up both stop loss and profit targets and then delete it, this is so my other indicators can assist me after entering any new trades. This is one of the best indicators to use for stop losses and take profit targets, just manage your risk management and lot sizes.

Note: I always let price action come to me and chase price action, so after one hour red candlestick (used for ATR), I let price action reverse into my buy order above price action at open of red pin bar candlestick used to get ATR. Please put into your trading using ATR for both stop loss and profit targets.