What is average true range in forex

Average True Range (ATR) is the average of true ranges over the specified period. ATR measures volatility, taking into account any gaps in the price movement. Typically, the ATR calculation is based on 14 periods, which can be intraday, daily, weekly, or monthly.

What is a good average true range?

What is a good number to use for an average true range indicator? The standard number to use with an ATR indicator is 14—as in 14 days—but that isn't the only strategy that works.

What is a true range in forex?

True Range takes into account the most current period high/low range as well as the previous period close (if needed). There are three calculations that need to be completed and then compared against each other. The True Range (TR) is the largest of the following: The Current Period High minus (-) Current Period Low.

What is the best ATR setting?

The standard setting for the ATR is 14, which means that the indicator will measure the volatility of a price based on the 14 most recent periods of time. As mentioned above, this is typically 14 days. Using an ATR setting lower than 14 makes the indicator more sensitive and produces a choppier moving average line.