Average True Range Percentage

It is typically derived from the 14 day moving average of a series of true range indicators.

Average true range percentage.

To measure recent volatility use a shorter average such as 2 to 10 periods. Description average true range percent atrp expresses the average true range atr indicator as a percentage of a bar s closing price. As is it average true range of an instrument can be easily compared to any other because of absolute percentage variation and not prices itselves. Average true range atr is a technical indicator measuring market volatility.

Usually the average true range atr is based on 14 periods and can be calculated on an intraday daily weekly or monthly basis. How this indicator works. To form the beginning the first true range value is calculated as the high minus the low. Average true range atr atr is the average of true ranges over the specified period.

The average true range formula looks as. The 14 day atr is the average of the daily true range values for the last 14 days. Atrp allows securities to be compared where atr does not. Average true range atr is the average of true ranges over the specified period.

Atrp is used to measure volatility just as the average true range atr indicator is. Typically the atr calculation is based on 14 periods which can be intraday daily weekly or monthly. Atr measures volatility taking into account any gaps in the price movement.