Home | Free Email Newsletter | Contact
 


Beginnings

  New Traders
  Compounding
  Starting Capital
  Stock Entry
  Expectancy

Money Management
   Money Management
  Kelly Formula

Newsletter
   Free Weekly Newsletter
  Daily Newsletter

E-Books
  Three Day Hammer
 
Trader's Bible

 
Trading Systems

System Development
 
Where to Start
  Trading Systems

Hall of Fame
   Richard Wyckoff
  Jesse Livermore

Resources
  
Reading List
  Unclaimed Money

Company Info
   Contact

 Free Newsletter
Receive our weekly list of  3 Day Hammer Stocks

  First Name

 
Email

True Range

Average True Range (ATR) is simply a moving average of true range calculated over a number of days. True Range is defined as the largest difference of:

  • today's high and today's low
  • today's high and yesterday's close
  • today's low and yesterday's close

Average True Range (ATR) is simply a moving average of true range calculated over a number of days. True Range and Average True Range are common volatility measurements. The larger the True Range, the greater the volatility of the stock.

 The following chart shows Lindsay Manufacturing and its Average True Range. Note that as the price moves get large, there is an increase in the ATR indicating increased price volatility.


Created in MetaStock from Equis International
www.equis.com

Source: Steven Achelis, Technical Analysis From A to Z
               
Welles Wilder, New Concepts in Technical Trading Systems

 


 

 

Copyright 2004 ARB Trading | Risk Notice & Disclaimer
Please contact us at: [email protected]


The Financial Ad Trader