Charts

Average True Range (ATR)

Description

The Average True Range (ATR) study measures the size of the period’s range, and takes into account any gap from the close of the previous period.

Formula

\[Average\;True\;Range = average(TR, n)\]

where:

\[TR = max(High_{t} - Close_{t-1}\;,\;Close_{t-1} - Low_{t}\;,\;High_{t} - Low_{t})\]

\[n = period\]