The Average Percentage True Range (APTR) is a technical indicator proposed by Vitali Apirine. Being a modification of the well-known J. Welles Wilder, Jr.'s Average True Range (ATR), it shares ATR's purpose of measuring volatility. On the other hand, the APTR measures it in another dimension: using percentage values instead of absolute ones allows comparing volatility of different securities.
Much like the standard ATR, the percentage version uses true range as the principal variable. In the APTR, the true range is divided by its own middle value, which yields the target percent ratio. This ratio is then smoothed by a moving average of the specified type, Wilder's smoothing being the default.
While the possibility of comparing the true range based volatility across different securities is characteristic of APTR, it may be equally useful when applied to a single symbol. High volatility is supposed to accelerate the APTR, while low volatility tends to keep it almost flat at a moderate level.
||The number of bars used to calculate the ATR.|
||The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull.|
The Average Percentage True Range plot.
1. "Average Percentage True Range" by Vitali Apirine. Technical Analysis of Stocks & Commodities, November 2015.
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.