Average True Range -ATR Definition, Analysis & Use

What is Average True Range – ATR? The average true range (ATR) is a technical analysis indicator that measures market volatility by decomposing the entire range of an asset price for that period. Specifically, ATR is a measure of volatility introduced by market technician J. Welles Wilder Jr. in his book, “New Concepts in Technical Trading Systems.” The true range indicator is taken as the greatest of the following: current high less the current low; the absolute value of the …

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