Average True Range


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Average True Range

In technical analysis, a measure of a security's volatility. It is calculated using one of three metrics: the current high less the current low, the current high less the previous close, and the current low less the previous close. The ATR is the highest of those metrics at any given time. A higher ATR indicates greater volatility. In order to have the most accurate measure possible, one generally uses a 14-day exponential moving average of the ATR.
References in periodicals archive ?
dollar, with the exchange rate rising to a two-week high of 1.0406 however, the two-day rally looks to be losing steam as the pair moves nearly 95% of its average true range. As a result, the dollar-franc may hold a narrow range throughout the day as the 30-minute RSI approaches overbought territory, and we may see the pair fall back over the week to cover divergence from the 100-SMA at 1.0325.
The GBP/USD has moved nearly 85% of its average true range and still has some room to push lower following the slump in risk appetite, and we may see the pair continue to search for a bottom over the following week as investors scale back long-term expectations for higher interest rates in the U.K.
However, the kiwi-dollar has moved nearly 200% of its daily average true range, with the daily RSI rising to 71 following the 150+pip rise, and the overnight rally looks to be losing steam as economists forecast New Zealand's growth rate to contract 0.2% in the second-quarter.
Summary: Despite recent volatility, EUR/USD may still provide an ideal environment for scalping strategies as the pair continues to see its Average True Range (ATR)...
The GBP/USD has moved nearly 60% of its average true range after finding support ahead of the 20-Day moving average at 1.6415, and has climbed back above the 50-Day (1.6476) during the early hours of the North American session.
At 55 bps the pair's average true range (ATR) is far below that of other major pair's.