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What is Average True Range (ATR)?

April 26, 2017ATR average range

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What is Average True Range (ATR)?

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The Average True Range (“ATR”) was introduced by Welles Wilder in his book, New Concepts in Technical Trading Systems. ATR is a measure of volatility, and it is a component of the ADX indicator. ATR is calculated by finding the greatest value of: 1. The distance from today’s high to today’s low. 2. The distance from yesterday’s close to today’s high. 3. The distance from yesterday’s close to today’s low.