ATR Indicator (Average True Range): The Complete Guide

The average true range (ATR) indicator is a tool used to measure market volatility.The ATR shows how much the price moves during a given period compared to the previous one. It is utilized in trend-following strategies to assess the likelihood of a trend reversal and to determine when the price will break out of a consolidation phase. Moreover, this tool is employed to set stop-loss and take-profit orders and to evaluate the width of the price range in channel trading strategies.The ATR is a sta