How this indicator works
- An expanding ATR indicates increased volatility in the market, with the range of each bar getting larger. ...
- A low ATR value indicates a series of periods with small ranges (quiet days). ...
- ATR is very useful for stops or entry triggers, signaling changes in volatility.
Average True Range (ATR) can be interpreted in the following way: The higher the value of the indicator, the higher the probability of a trend change. The lower the indicator's value, the weaker the trend's movement is.