Average True Range (ATR)
The Average True Range (ATR) is a technical analysis indicator that measures market volatility by quantifying the degree of price movement over a specific period without regard to price direction. It helps traders assess potential price fluctuations and manage risk.
Tumisang Bogwasi
Tumisang Bogwasi
What is Average True Range (ATR)?
The Average True Range (ATR) is a technical analysis indicator developed by J. Welles Wilder Jr. that measures market volatility. It quantifies the degree of price movement over a specific period, without regard to price direction. ATR helps traders understand how much a security has moved on average during a given timeframe, making it a valuable tool for setting stop-loss orders and determining position sizing.
Developed in the 1970s, ATR was initially applied to commodities markets but has since become widely used across all financial markets, including stocks, forex, and cryptocurrencies. Its primary function is to gauge the
