Drop your number, and we will call you

NIFTY

10491.05      108.35 1.04%

BANK NIFTY

25302.50      347.30 1.39%
ACC 1651.45 (1.17%) Link
Symbol     LTP Chng%
JPASSOCIAT 19.15   + 17.13
KITEX 246.40   + 10.20
MINDTREE 811.90   + 9.61
FORTIS 159.95   + 9.33
JINDALPOLY 357.20   + 8.05
Symbol     LTP Chng%
JUBILANT 883.80    -10.89
VAKRANGEE 189.70    -4.98
MTNL 23.70    -2.27
VINATIORGA 781.75    -2.09
SOMANYCERA 661.30    -1.93
View All

Average True Range (ATR)

Introduction

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.

Formula

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

Advantage

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

Our Partners

Fyers-traderguide.in
Zerodha-traderguide.in
Tradejini-traderguide.in
slgroup-traderguide.in
  • For sales: +91 74051 00012

  • For support: +91 74053 00012