What is the average true range?

The average true range is an indicator of the price volatility of an asset. It is best used to determine how much an investment's price has been moving in the period being evaluated rather than an indication of a trend.

What is fidelity average true range (ATR)?

Fidelity Average True Range (ATR) is the average of true ranges over the specified period. ATR measures volatility, taking into account any gaps in the price movement. Typically, the ATR calculation is based on 14 periods, which can be intraday, daily, weekly, or monthly.

How do you interpret the average true range (ATR)?

The way to interpret the Average True Range is that the higher the ATR value, then the higher the level of volatility. The look back period to use for the ATR is at the trader's discretion however 14 days is the most common. ATR can be used with varying periods (daily, weekly, intraday etc.) however daily is typically the period used.

What does a high value of a true range mean?

The period can be monthly, weekly, daily, or even intraday. A high value of average true range implies high volatility of the market price of the assets and a low value implies low price variations. The calculation of the average true range is 14-period based. The period can be intraday, daily, weekly, or monthly.