Average True Range

Average true range is a technical study used as a measure of volatility, introduced by Welles Wilder.

The value of the true range indicator is the highest of current high less the current low; the absolute value of the current high less the previous close; or the absolute value of the current low less the previous close.

The average true range is a moving average of the true range indicators, typically using a range of 14 days.

A stock experiencing a high level of volatility will have a high average true range, and a low volatility stock will have a lower average true range.

• Number of periods to use in calculating average true range
• Value to use as basis for calculation (open, low, high, close, adjusted close)