Charts & technicals
What is ATR (Average True Range)?
Also called: Average true range
Hinglish mein padhein: ATR kya hota hai?
ATR measures a stock's average daily price range, including gaps, over a set period — usually 14 days. It is a volatility gauge.
The true range is the largest of: today's high minus low, high minus previous close, and previous close minus low.
Traders place stops a multiple of ATR away so normal noise doesn't knock them out, and size positions smaller in high-ATR stocks.
Related terms
- VolatilityVolatility measures how much and how quickly a price moves. Higher volatility means bigger swings in both directions.
- SupertrendSupertrend is a trend-following line built from the Average True Range. Price above the line is an up phase; below it, a down phase.
- Stop-loss orderA stop-loss order automatically exits a position when the price reaches a trigger level, to cap the loss on a trade.