Getting Started
- Welcome
- Login / Sign out
- Setup Wizard
- Tutorial
- Application Layout
- Real-Time / Delayed Data
- Shortcut Keys
- Application Settings
- Light / Dark Theme
- Contact Support
Workspaces
- About Workspaces
- Add New Workspace
- Delete Workspace
- Right-Click Commands
- Lock Workspace Content
- Save / Restore Workspaces
- Share a Workspace
Panels
- Types of Panels
- Add / Delete Panels
- Moving / Resizing Panels
- Panel Linking
- Panel Title
- Tabbed Panels
- Duplicate a Panel
- Panel Templates
Multiple Displays
- About Displays
- Docking
- Delete a Display
Symbols
- Symbol Search
- Change Symbol on a Panel
- Futures Symbol Shortcuts
- Delivery Months
- Nearest / Continuation
Trading
- Trading Gateway
- Configuration
- Docked Order Entry Bar
- Paper Trading
- Order Entry
- The Trading View Tab
- DOM Trader
- Order Ticket
- Chart Trader
  - About Chart Trader
  - Enter an Order from the Chart
- Trade from the Quoteboard
- Order Summary
- Trading Tips
- Terminology
  - Order Types
  - Time in Force (TIF)
Charts
- About Charts
- Add a Chart
- Create Default Chart Style
- Chart Style
- Chart Period / Interval
- Time Ranges
- Chart Drawing Tools
  - Working with Tools
  - 50% Line
  - Andrew's Pitchfork
  - Ellipse
  - Fibonacci Arcs
  - Fibonacci Fan
  - Fibonacci Retracement
  - Fibonacci Retracement Adv.
  - Gann Fan
  - Horizontal Line
  - Horizontal Ray
  - Marker
  - Rectangle
  - Speed Resistance Fan
  - Speed Resistance Arcs
  - Symbol
  - Text
  - Trend Line
  - Vertical Line
- Chart Properties
- Chart Trader
- Pre/Post Market Data
- Tracking Cross / Data View
- Forward Curve
- Chart Scrolling
- Right-Click Options
- Equations
- Multiple Symbols on a Chart
- Seasonality Charts
- Scaling
- Duplicate Chart
- Saving / Printing Charts
Studies
- Working with Studies
- Accumulation/Distribution Index
- ADX/Directional Movement Index
- Alligator
- Aroon
- Average True Range
- Awesome Oscillator
- Bollinger Bands
- Bollinger Bands %B
- Bollinger BandWidth
- Camarilla Levels
- Chaikin Volatility
- Choppiness Index
- Color Bars
- Commodity Channel Index
- Detrended Price Oscillator
- Force Index
- Highest High/Lowest Low
- Historic Volatility
- Inside/Outside Days
- Keltner Channel
- Line Oscillator
- MACD Oscillator/Histogram
- Momentum
- Money Flow Index
- Moving Averages
- Moving Standard Deviation
- On Balance Volume
- Oscillator
- Parabolic Time/Price
- Percent Volume Change
- Pivot Points
- Pivot Points Moving
- Price Volume Trend
- Rate of Change
- Rolling Sum
- RSI Wilder's
- Sentimentum
- Serial Differencing
- Smoothed Oscillator
- Stochastic Fast
- Stochastic Momentum Index
- Stochastic Slow
- Time Series Forecast
- Triple Exponential
- Turtle Channel
- Typical Price
- Ultimate Oscillator
- Volatility Index
- Volume
- Volume Index
- Volume Moving Average
- Volume Moving Average Oscillator
- Volume Rate of Change
- Welles Accumulative Swing Index
- Welles Wilder Volatility
- Williams %R
- Williams Accumulation Distribution
Quotes
- Add a Quote
- Settings
- Fields
- Headlines
- Quoteboard
- Fixed Quoteboards
- Export Quoteboard (DDE)
- Extended Quote
- Technical Quote
- Leaderboards
Time & Sales
- About Time & Sales
- Settings
Forex Spot Rates
- Add Forex Spot Rates
- Quoteboard Settings
- Right-Click Options
Technical Opinion
- Add Technical Opinion
- About Barchart Opinions
Price Alerts
- About Price Alerts
- Types of Alerts
- Setting an Alert
- Cancel, Delete, Reset Alerts
Options
- Add Options Panel
- Options Panel Display
- Options Trades
- Settings
- Fields / Columns
Market Depth
- About Market Depth
- About Market Depth Ladder
- Settings
Traded Spreads
- About Traded Spreads
- Spread Types
- Ladder Settings
Spread Matrix
- About Spread Matrix
- Settings
News
- About News
- Viewing News
- Search News
- News Feeds
- Settings
Weather
- Current Weather
  - Current Weather Panel
  - Settings
- Weather Map
- Weather View
  - Interactive Weather
  - Weather Configuration
Tools
- Instrument Profile
- Printing
- Historical Data

Average True Range

Average True Range Technical Indicator (ATR) is an indicator that shows volatility of the market. It was introduced by Welles Wilder in his book "New concepts in technical trading systems". This indicator has been used as a component of numerous other indicators and trading systems ever since.

Study Type: Stand-alone

Description

Welles Wilder developed Average True Range to create a tool for a precise and realistic calculation of market's price activity. This value is considered when calculating the directional movement of a market. Mr. Wilder defined the True Range to be the greatest for the following periods:

The distance from today's high to today's low.
The distance from yesterday's close to today's high.
The distance from yesterday's close to today's low.

True Range measures market volatility and is an integral part of indicators such as ADX (Average Directional Movement) or ADXR (Average Directional Movement Rating), and several others, to identify the directional movement of a market. The ATR is the basic unit of measurement for Wilder's Volatility System.

The Average True Range indicator identifies periods of high and low volatility in a market. High volatility describes a market with ongoing price fluctuation, whereas low volatility is used to label a market with little price activity. Measuring market volatility can help in identifying buy and sell signals and, additionally, risk potential. Markets with high price fluctuation offer more risk/reward potential, because prices rise and fall in a short time, giving the investor the opportunity to buy or sell at, supposedly, the right moment.

When a market becomes increasingly volatile, the ATR tends to peak rising in value, and during periods of little volatility, the ATR bottoms out decreasing in value. A market will usually keep the direction of the initial price move, though this is certainly not a rule. Analysts, therefore, tend to use Average True Range to measure market volatility and other technical indicators to help identify market direction.

Parameters

Period: (14) - Number of periods to use for the Simple Moving Average