Average True Range (ATR)
The Average True Range (ATR) is a technical analysis indicator that measures an asset’s volatility over a given period, i.e., the average size of its price fluctuations.
Unlike other indicators, the ATR does not indicate the direction of the price, but only how much it moves. A high ATR value signals wide fluctuations, while a low value indicates more stable phases.
The ATR is used, for example, to set operational references proportionate to volatility. It is a statistical tool based on historical data.
Disclaimer: This entry is for information purposes only and does not constitute investment advice or a recommendation.