ATR
Typical range per period
What it is
Average True Range measures how far price typically travels in a period, including gaps. A volatility measure with no direction.
What it may suggest
The most practical use is stop placement and sizing: a stop inside one ATR is inside normal noise.
Where it fails
Backward-looking. ATR expands after volatility arrives, so a stop sized on yesterday’s calm can be far too tight today.
Also called average true range.
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