ATR (Average True Range) is a technical indicator to measure volatility of a trading instrument. Based on bars’ values, this indicator gives clues to a market dynamic. A series of factors determine a degree of market volatility such as the number of traders in the market at a particular time, the number of executed trades, time of transactions, and macroeconomic news. ATR helps to exclude periods of low volatility. This time-tested tool of technical analysis is incorporated into every trading platform. ATR enables traders to make a more precise outlook for a currency pair. If the indicator’s value goes upward, the market is trading with higher volatility. In case the indicator’s value goes downward, volatility gets lower. Importantly, ATR cannot be used to predict a direction of a trend line. For this forecast, a trader should use an additional tool – a moving average.