Average True Range

The Average True Range (ATR) is a measure of volatility based on the moving average (usually over the last 14-days) of the True Ranges.

The True Range indicator is the greatest of the following:

• current high less the current low.

• the absolute value of the current high less the previous close.

• the absolute value of the current low less the previous close.

The Average True Range is a moving average (usually over the last 14-days) of the True Ranges.

Generally, stocks experiencing a high level of volatility will have a higher ATR, and low volatility stock will have a lower ATR.