1R and stop levels
What it measures¶
A stop is a price decided in advance at which a position would be closed because the reason for owning it no longer applies. 1R is the distance from the price at which a position is entered to its stop — the risk taken on each share, in the unit every later result can be measured in (a gain of 2R is twice what was risked). The Technical page prices several published stop rules side by side, against the latest close as a stated reference entry:
| Rule | Where the stop sits | The idea behind it |
|---|---|---|
| 2 × ATR (the "Turtle" traders) | two average daily ranges below the reference | room for ordinary noise |
| 3 × ATR (Wilder) | three average daily ranges below | a wider, position-trading width |
| Chandelier | three ATRs below the highest high of 22 sessions | trails up from the high as a trend runs |
| 1 × ADR % | one average daily range % below | a tight, short-term width |
| under the 30-week line (Weinstein) | just below the 30-week average | the trend's definition used as the exit |
ATR is the average true range — the typical daily span of the price; ADR % the average daily range as a percentage.
Why it is on the page¶
It is the page's one link to acting, framed as a question: if one owned this share, where would the reason for owning it be proved wrong? The spread between the rules is the lesson — the same share can carry very different risk depending on the philosophy chosen.
Thresholds, their source and the population they were fitted on¶
The page prices the distances and endorses none of them. Rules of other authors — such as William O'Neil's fixed 7–8% cut — are quoted with their source and never priced, because mixing two authors' rules into one range would lose the attribution that gives them meaning. How many shares to own needs an account and a risk budget, which belong to the Position Sizing Calculator, not to this page.
- Sources: Richard Dennis's Turtle traders (2 × ATR); J. Welles Wilder (3 × ATR); Chuck LeBeau (the Chandelier exit); Stan Weinstein (the 30-week line).
- Fitted on: no statistical sample — traders' rules.
- Evidence grade: practitioner convention.
A worked example¶
Celestica, as the Technical page showed it on 9 August 2026: 1R ran from 0.56% (just under the 30-week line, which the price sat barely above) to 24.99% (three ATRs). In between: 7.49% (one ADR %), 10.16% (Chandelier) and 16.66% (two ATRs). The same share, five very different risks.
What “No verdict” means here¶
The levels carry no verdict. A rule whose input is missing — no ATR, no 30-week average — is shown as insufficient data and named; the others are still priced.
What the verdict is and is not¶
The table describes distances from a reference price under published rules. It is not an exit the product proposes, not a forecast that the price will reach any level, and not an instruction to trade the shares.