Description
The Average True Range (ATR) study calculates the average true price range over a time period. True range is the greatest of the following:
- the difference between the current high and the current low
- the difference between the current high and the previous close
- the difference between the previous close and the current low
By default, the average true range is a 14-period Wilder's moving average of this value; both the period and the type of moving average can be customized using the study input parameters.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of bars used to calculate the ATR. |
average type
|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. |
Plots
| Plot | Description |
|---|---|
ATR
|
The Average True Range indicator. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.