Average True Range (ATR)
The Average True Range (ATR) study measures the size of the period’s range, and takes into account any gap from the close of the previous period.
ATR = Average ( True Range, n )
- True Range = Max of ( High - Low ), ( High -PreviousClose ), ( PreviousClose - Low )
- Average = Simple, Exponential, Weighted, and Triangular
- n = Time period