Volatility Indicators
Average True Range (ATR)
Average True Range
Deep Dive
Everything You Need to Know
Under the Hood
How It Works
True Range is the greatest of: current high minus current low, absolute current high minus previous close, or absolute current low minus previous close. ATR averages these.
In Practice
How Traders Use It
ATR helps set stop-loss levels and position sizes. Higher ATR values indicate higher volatility. It does not indicate price direction, only volatility.
Highlights
ATR at a Glance
- Measures volatility, not direction
- Default period: 14
- Used for stop-loss placement
- Higher ATR = higher volatility
- Essential for position sizing
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FAQ
Frequently Asked Questions
What is the Average True Range (ATR) indicator?
Average True Range
How does ATR work?
True Range is the greatest of: current high minus current low, absolute current high minus previous close, or absolute current low minus previous close. ATR averages these.
How do traders use ATR in their strategies?
ATR helps set stop-loss levels and position sizes. Higher ATR values indicate higher volatility. It does not indicate price direction, only volatility.
What are the key points to know about ATR?
Measures volatility, not direction Default period: 14 Used for stop-loss placement Higher ATR = higher volatility Essential for position sizing
Can I use ATR with Cryptorobot.ai?
Yes. Average True Range (ATR) is available as a built-in indicator in Cryptorobot.ai. You can add it to any automated strategy using the no-code strategy builder, backtest it against historical data, and deploy it live on supported exchanges.