Average True Range ATR is technical indicator which measures degree of price volatility.

It was developed by J. ATR is calculated by formula: First step in calculation of ATR is calculation of True Range TR.

How to Use ATR Indicator In Forex Trading

True range is based on high and low values of current period H and L and average true range in forex trading value of previous period C. Second step is calculation of ATR using values of TR. Average True Range ATR. Strong moves, in both directions, are often accompanied by large true ranges, especially at the beginning of move.

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Welles Wilder found that high ATR values occur at market bottoms following a panic selling. On the other hand, low ATR values usually occur at market tops. Chart Pro online mobile stock exchanges chart tutorial ticker FAQ contact us.

Chart Pro online User name email:. Average True Range ATR Average True Range ATR is technical indicator which measures degree of price volatility.