Normalized Average True Range (NATR)

NATR is ATR (Average True Range) normalized as a percentage of closing price: (ATR / Close) × 100. This normalization makes volatility comparable across different price levels - crucial for cryptocurrencies where BTC at $20k versus $60k has vastly different ATR values but similar percentage volatility. NATR uses default 14-period ATR calculation, then converts to percentage terms. Values represent average percentage movement per bar, making volatility analysis price-scale independent. This allows direct comparison of volatility across different assets, timeframes, and price regimes.

Cryptocurrency traders use NATR to compare volatility across different coins and price levels objectively. A BTC NATR of 3% and an altcoin NATR of 8% clearly shows the altcoin is relatively more volatile regardless of absolute prices. NATR is essential for position sizing - higher NATR requires smaller position sizes to maintain consistent risk. It works well for identifying volatility expansions/contractions as percentages, setting stop-loss distances proportional to volatility, and comparing historical volatility regimes. NATR combines effectively with Bollinger Bands for percentage-based bands, with RSI for volatility-regime filtering, and for portfolio risk management across multiple assets.