The average true range (ATR) measures market volatility by decomposing the entire range of an asset price for that period. The true range indicator is taken as the greatest of the following: current high less the current low; the absolute value of the current high less the previous close; and the absolute value of the current low less the previous close.


The ATR does not provide an indication of price direction or duration, only volatility. High ATR values often occur at market bottoms following a "panic" sell-off. Low Average True Range values are often found during extended sideways periods, like those found at tops and after consolidation periods.

Indicator Triggers:

The ATR indicator has a lot of classic triggers, you can find how it works on the General Indicator Triggers description.

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