In this guide
True range in plain languageWhat the PreBreakout tool doesMultiplier is not a recommendationATR and percentage distance are different unitsTrue range in plain language
True range is designed to account for both the current high-low span and gaps from the previous close. ATR then smooths those true-range observations across a chosen period. Different platforms can use slightly different initialization details, so values may differ modestly.
What the PreBreakout tool does
The site does not calculate ATR from market history. You enter an ATR value and a multiplier, and the tool converts them into a distance. This avoids market-data licensing issues and keeps the calculation auditable.
Multiplier is not a recommendation
A multiplier of 1, 1.5, 2 or any other value is a user assumption. The calculator does not label any multiplier as optimal. Its job is only to show the resulting numerical distance.
ATR and percentage distance are different units
ATR is usually expressed in the same units as price. Converting the resulting distance to a percentage of entry can make hypothetical examples easier to compare, but it still does not create a probability estimate.