empty
 
 
Ön épp elhagyja a weblapot
www.instaforex.eu >
a weblap üzemeltetője a(z)
INSTANT TRADING EU LTD
Számlanyitás

ATR indicator formula and settings: description, adjustment and application

The Average True Range indicator (ATR) is used for measuring market volatility. ATR forex indicator was introduced by Welles Wilder who described it in his book “New Concepts in Technical Trading Systems”. Since then, the ATR forex indicator has been applied as a part of other trading systems.

The Average True Range indicator often reaches peaks at the bottoms after prices fall sharply on the back of massive sell-offs. Low readings of the indicator correspond to continuous periods of horizontal moves that are seen at peaks and during consolidation. ATR can be interpreted in the same way as other volatility indicators. To make an accurate forecast based on ATR trading, one should stick to the following principles: the higher the reading, the higher the possibility of trend reversal; the lower the reading, the weaker the trend momentum.

Average True Range - ATR

ATR Calculation:

True Range is the biggest value among these three variables:
- difference between the current high and low;
- difference between the previous closing price and the current high;
- difference between the previous closing price and the current low.

What is ATR in simple words? It is the moving average of the readings within the true range.

   Back to the list of indicators   
Back to the list of indicators
Tegye meg az első lépést célja felé
Nyisson számlát
Most elhagyja a www.instaforex.eu weblapot, amelyet az Instant Trading EU LTD üzemeltet
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off