Average True Range (ATR)

The ATR is a Welles Wilder style moving average of the True Range. The ATR is a measure of volatility. High ATR values indicate high volatility, and low values indicate low volatility, often seen when the price is flat.

The ATR is a component of the Welles Wilder Directional Movement indicators (+/-DI, DX, ADX and ADXR).

The ATR was developed by J. Welles Wilder and is described in his 1978 book New Concepts In Technical Trading Systems.

Formula:




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