How to Use ATR Forex Indicator and Become a Better Forex Investor
The ATR (Average True Range) is a technical analysis forex indicator that decomposes the entire price range for a certain period to measure market volatility. Specifically, it was introduced by market technician J. Welles Wilder Jr. as a measure of volatility. The true range forex indicator is considered as the greatest among current high minus the current low, the absolute value of the current low minus the previous close, and the absolute value of the current high minus the previous close. So, the ATR indicator is a moving average, usually using 14 days of the true ranges. How To Calculate ATR? While trading, you can use shorter periods than 14 days for generating more trading signals because longer periods tend … Read more