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
