ATR (Average True Range)

What is ATR?

Average True Range measures market volatility by calculating the average of true ranges over 14 periods. Higher ATR means wider price swings; lower ATR means calmer markets.

Parameters (14)

• X-Axis: Time (candle intervals)
• Y-Axis: ATR value (price units)
• Line: 14-period ATR

Interpretation

• Rising ATR = increasing volatility
• Falling ATR = decreasing volatility
• ATR spikes often occur at trend reversals
• Data refreshes periodically — not real-time

Trading Signals

• Rising ATR confirms breakout strength
• Falling ATR = trend losing energy
• Used for stop-loss placement (2×ATR)

Price Overlay

• Close Price: Daily closing price (right Y-axis)
• Rising ATR + trending price = strong directional move
• Falling ATR + price consolidating = potential breakout setup
• ATR spike at price reversal = volatility expansion event