Should I use ATR for stop-loss?

Could you elaborate on whether the Average True Range (ATR) is a suitable indicator for setting stop-loss orders? I've heard it can help measure volatility, but how does that translate into effective risk management? Is there a specific formula or guideline to follow when using ATR for stop-losses? Additionally, what are some of the potential limitations or pitfalls of relying solely on ATR for stop-loss placement? I'd appreciate any insights you could provide on how to best utilize ATR in this context.