ATR (Average True Range)
Volatility Indicator
ATR (Average True Range)
ATR measures market volatility by calculating the average range between high and low prices.
Overview
The Average True Range doesn't indicate price direction but rather the degree of price volatility. High ATR values indicate high volatility, while low values indicate low volatility. It's commonly used to set stop-loss orders.
Use Case
Perfect for setting stop-loss levels and understanding market volatility.
Calculation
ATR = Moving Average of True Range over N periods