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Forex indicators What is atr and what do I need to know about them?
avatar Bright_mind
Question by: Kinzie - 05 Dec 2017, 07:50:22
What is atr and what do I need to know about them?
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Answers (1)
avatar user 12882
Answer by: Lorry - 22 Feb 2018, 18:06:15

ATR, which is short for Average True Range, is a technical indicator that was developed to help traders to calculate the current market volatility. Most traders prefer to use ATR to estimate the average range where price fluctuates. There are three ways to calculate this range. 1. High minus low within the given period. 2. Absolute high minus the closing price in the preceding period. 3. Absolute low minus the closing price in the preceding period. Once this is done, we calculate the average value on the basis of the obtained data. The result shows when to enter or exit the market.

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