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Average True Range - ATR

外汇网2021-06-19 13:53:19 57
A measure of volatility introduced by Welles Wilder in his book: New Concepts in Technical Trading Systems.

The true range indicator is the greatest of the following:

-current high less the current low.

-the absolute value of the current high less the pvious close.

-the absolute value of the current low less the pvious close.

The average true range is a moving average (generally 14-days) of the true ranges.

|||Wilder originally developed the ATR for commodities but the indicator can also be used for stocks and indexes. Simply put, a stock experiencing a high level of volatility will have a higher ATR, and a low volatility stock will have a lower ATR.

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