Technical
What is ATR (Average True Range)?
The average size of an asset's daily trading range over 14 days, including any overnight gaps — raw volatility in price units.
Formula
ATR = 14-period average of True Range; TR = max(High − Low, |High − Prior Close|, |Low − Prior Close|)
How to Interpret
Rising ATR means expanding volatility (often around breakouts or breakdowns); falling ATR means compression. Its most practical use is sizing: stops and targets set as multiples of ATR adapt automatically to each asset's temperament.
Typical Ranges
Direction-blind — ATR spikes identically in crashes and melt-ups. Expressed in price units, so it isn't comparable across assets without normalizing by price.
Find Stocks Using This Signal
Screen US and Indian stocks by ATR in the Technical screener.