Average True Range Atr
The Average True Range (ATR) is a technical indicator gauging market volatility, typically calculated as an average of true ranges over 14 periods—daily, weekly, monthly, or intraday. The formula is: ATR = [Previous ATR × (n - 1) + True Range] / n, where n is the number of periods. True Range is the highest of: (Day 1 High - Low), |Day 1 High - Day 0 Close|, or |Day 1 Low - Day 0 Close|. ATR reflects price movement intensity, helping traders assess risk and set stop-loss levels in volatile markets.
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