Welles Wilders True Range and Average True Range Indicators
KEY FEATURES
- Used as Functions in Many Indicators
These indicators are used as functions in many, many indicators out there. - Very Smooth
TazaTeks version of the ATR is a little bit smoother than the NinjaTrader version. - Can be Used All on its Own
The Average True Range indicator can be used all on its own as a volatility indicator.
The Average True Range indicator can be used all on its own as a volatility indicator. Periods of low volatility, defined by low values of the ATR, are often times followed by very large price moves. As with most volatility indicators, the ATR won't tell you which direction the movement will be, only that there will be one. Average True Range and Bollinger Bands are often described together, because they both describe impending price moves. The ATR should always be used with a directional indicator, such as Williams %R or RSI, in conjunction with the Average True Range indicators.
Chart Examples:
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