Average True Range
DISCLAIMER: If you trade stocks, you do so at your own risk. Trading/Investing in stocks carry high risk. Any trade or action you take in the market is your own responsibility. Techpaisa.com will not be liable for any loss arising out of the use of any information on the website by anybody.
We have introduced several technical analysis tools and talked about them here and here.
Quoting from stockcharts:
Developed by J. Welles Wilder, the Average True Range (ATR) is an indicator that measures volatility. It is important to remember that ATR does not provide an indication of price direction, just volatility.
At techpaisa,we use a 14-day period (most common period) to calculate ATR. You can find ATR in technical analysis section on each stock page at techpaisa. ATR is calculated using stock prices and is not normalized, which means, a stock with price Rs. 100 will have a lower ATR than a stock with price Rs. 1000. ATR can be used to identify breakouts. When a breakout occurs, ATR suddenly goes up.
For more details, check out following links.
Other Tutorials on internet:
Stay tuned for latest updates:
- Subscribe to our RSS feed
- Subscribe by Email
- Friend us on Facebook
- Add us on Google+
- Follow @techpaisa
Happy Investing!
Techpaisa Team.
Discussion
There are no comments for this post.Leave A Reply
You may use Markdown syntax but raw HTML will be escaped and headings normalised.