Indicator - Average True Range
-
- 0
- 814
- 0
Calculation Average True Range
Average True Range represents is a volatility indicator.
True range is the highest data in absolute value among:
(today's high - today's low)
(today's high - yesterday's close)
(today's low - yesterday's close)
To calculate Average True Range, a moving average is then applied to the true range.
Interpratation Average True Range
This indicator of volatility measures selling pressure and buying pressure. When the ATR rises there is more and more pressure and a strong volatility of the stock.
When the ATR decreases there is less and less pressure and a low volatility.
