DEFINITION of 'Average True Range - ATR'
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 previous close.
-the absolute value of the current low less the previous close.
The average true range is a moving average (generally 14-days) of the true ranges.
INVESTOPEDIA EXPLAINS 'Average True Range - ATR'
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.
A widely used indicator in technical analysis that helps smooth ...
A description of the price range of a stock on a particularly ...
A term employed by market technicians and day traders. Outside ...
A charting term used by technical analysts and day traders. Inside ...
1. A statistical measure of the dispersion of returns for a given ...
A method of evaluating securities by analyzing statistics generated ...