Average of the true range (largest of today's H-L, |H − prev C|, |L − prev C|) over N bars. Pure volatility measure — no direction.
TR = max(H − L, |H − prev C|, |L − prev C|) ATR = smoothed TR over N periods
Position sizing (stop distance = 1.5-2× ATR), volatility-adjusted targets, filter for regime (rising ATR = expanding vol).
Doesn't tell you direction. High ATR isn't inherently bullish or bearish.
Nifty 50 daily bars with ATR (Average True Range) pre-loaded:
No strategies on the site currently reference ATR (Average True Range) directly, but the technique is used across the discretionary trading landscape. Combine with a trend-following indicator or a volume filter for context.