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.