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Apply an Average True Range Indicator

The Average True Range indicator is used to determine the volatility of the market. The idea is to replace the high-low interval for the given period, as the high-low does not take into consideration gaps and limit moves. You set the period when you create the study.

The True Range is the largest of:

The Average True Range is a simple moving average of the true range values.


To apply an Average True Range

  1. From within a chart, from the Edit menu select Studies.
  2. Choose Average True Range and Add the study.
  3. Complete parameters as necessary.


Important Disclosures