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10653.25      68.50 0.65%


25782.45      192.80 0.75%
ACC 1571.55 (1.17%) Link
Symbol     LTP Chng%
J&KBANK 47.10   + 12.28
RUPA 354.00   + 9.43
LAXMIMACH 6140.15   + 5.59
GRAPHITE 1059.00   + 5.00
VMART 2206.20   + 5.00
Symbol     LTP Chng%
REPCOHOME 336.00    -9.41
DHFL 248.40    -7.59
IBULHSGFIN 843.00    -7.09
HATHWAY 28.75    -5.27
8KMILES 114.15    -4.99
View All

Average True Range (ATR)


The True Range Indicator is the greatest of the following: - Current high less the current low. - The absolute value of the current high less the previous close. - The absolute value of the current low less the previous close. "The average true range is a moving average (generally 14-days) of the true ranges".

ATR was originally developed for commodities but the indicator can also be used for stocks and indexes. Simply put, a stock experiencing a high level of volatility will have a higher ATR, and a low volatility stock will have a lower ATR.


Current ATR = [(Prior ATR x 13) + Current TR] / 14


ATR is not a directional indicator, such as MACD or RSI. Instead, ATR is a unique volatility indicator that reflects the degree of interest or disinterest in a move. Strong moves, in either direction, are often accompanied by large ranges, or large True Ranges. This is especially true at the beginning of a move. Uninspiring moves can be accompanied by relatively narrow ranges. As such, ATR can be used to validate the enthusiasm behind a move or breakout. A bullish reversal with an increase in ATR would show strong buying pressure and reinforce the reversal.

Sample Calculation

Technical chart for ATR

Technical Indicators

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