Charts

True Range

Description

J. Welles Wilder's True Range indicator was introduced in his book, Technical Trading Systems. It measures the daily range plus any gap from the closing price of the preceding day.

Formula

The True Range indicator equals the greater of the following:

  • High for the period less the Low for the period.
  • High for the period less the Close for the previous period.
  • Close for the previous period and the Low for the current period.