Average True Range Definition
The Average True Range (ATR) is a measure of a stock’s volatility. The idea is to take the day’s range from low to high, including gaps from the previous day and average that range across several days.
The ATR was first described by Welles Wilder in New Concepts in Technical Trading Systems
Extra Insight:
The ATR can be calculated for any chart time scale, by calculating the true range for each bar and averaging.
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Tags: ATR, Welles Wilder
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