How to calculate the Average True Range?
The average true range (ATR) measures the market volatility. This indicator shows how much a stock moves in a period. A high ATR can indicate a stock with a high level of volatility and a low ATR indicates a stock with a low level of volatility. The ATR can demonstrate how much an asset moves over the course of the day. This technical tool is commonly used with traders to place trailing stop losses. To calculate the ATR you need …