EncyclopediaATR (Average True Range)
In one line: The average size of a bar's full range, used to measure volatility.
The True Range is the biggest of three numbers: high − lowThe highest and lowest price of the past year., |high − previous close|, |low − previous close|. ATR averages it, usually over 14 periods. Like RSIA 0–100 gauge of how strong recent gains are compared with losses., it comes from J. Welles Wilder (1978) (StockCharts, secondary).
ATR does not say up or down, only how big moves have been. Some traders use it to set stop distances, which then feeds into Position sizing.
Related
Sources & studies
Last checked: 2026-11-04 · Educational, not financial advice.
Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.