Welcome to the Investors Trading Academy talking glossary of financial terms and events.
Our word of the day is “Average True Range or ATR”
ATR is a measure of volatility introduced by Welles Wilder in his book: New Concepts
in Technical Trading Systems.
The true range indicator helps giving information using the current high less the current low.
The average true range is a moving average generally 14-days of the true ranges.
The Average True Range is a nationwide comprehensive report on its economic transactions such as
activity in the country's reserves; income earned overseas, goods and services traded
internationally, as well as its financial assets.
This balance indicates the country's level of supply and demand, which in turn can influence
the country's currency exchange rate compared to the rest of the world.
This indicator originally developed for commodities can also be used for stocks and indices.
Simply put, a stock experiencing a high level of volatility will have a higher range, and
a low volatility stock will have a lower range.