How do you trade based on ATR?

As a professional in the realm of cryptocurrency and finance, I'm curious to understand how traders leverage the Average True Range (ATR) indicator in their trading strategies. Could you elaborate on the significance of ATR in determining entry and exit points? Do traders typically use ATR as a standalone indicator or do they combine it with other technical tools? Also, what are some common mistakes traders make when incorporating ATR into their trading plans? Understanding the nuances of ATR trading could potentially enhance my own investment decisions.