Average True Range



Average True Range Interpretation:

This indicator of volatility measures selling pressure and buying pressure. When the ATR rises there is more and more pressure and a strong volatility of the currency. When the ATR decreases there is less and less pressure and low volatility.

Average True Range Calculation:

This represents the volatility of a stock. True range is the highest data in absolute value among:

Today's high - today's low
Today's high - yesterday's close
Today's low - yesterday's close

To calculate Average True Range, it is necessary to apply a moving average to the true range.




Return from Average True Range to Our Indicator List

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