Use ATR for take profit by multiplying the current ATR by 2 or 3 and adding it to your entry for longs (subtract for shorts), creating a volatility-adjusted target.
A common framework sets the take-profit at entry plus 3x ATR and the stop loss at entry minus 1.5x ATR, locking in a 2:1 reward-to-risk ratio.
Don't rely on ATR alone; combine it with market structure including support, resistance, and swing highs and lows to identify realistic levels.
For day traders, ensure the distance is less than the daily ATR value, or the move likely won't complete in session.