Many traders will use ATR as a way to determine their stops. It usually works like this:
Stop loss for a short trade = high of last candle + ATR value
Stop loss for a long trade = low of last candle – ATR value
In order to make it easier to visually see where those stops would be, I’ve created an ATR bands indicator. This indicator will show an upper and lower band around the price, showing where you can put your stops (or trail them in open positions).
Since a picture is worth a thousand words, here is an example of how it looks:Read more and download