Loading…
Technical analysis
Also called: ATR, Average true range
ATR (Average True Range) measures how far a price typically moves in one bar, in rupees, including any gap from the previous close. It is usually a 14-period average and is often used to size stop-losses.
True range = max(High − Low, |High − Previous close|, |Low − Previous close|); ATR = 14-period Wilder average of true range
A stock with an ATR of ₹12 has typically moved about ₹12 between its daily high and low (gaps included) over the last 14 sessions.
It is the practical measure of how much movement to expect, which is what position size and stop distance should be based on.
A larger figure is not worse, only livelier. It should be read against the share price, not on its own.
ATR (Average True Range) measures how far a price typically moves in one bar, in rupees, including any gap from the previous close. It is usually a 14-period average and is often used to size stop-losses.
True range = max(High − Low, |High − Previous close|, |Low − Previous close|); ATR = 14-period Wilder average of true range. A stock with an ATR of ₹12 has typically moved about ₹12 between its daily high and low (gaps included) over the last 14 sessions.
No. ATR describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.