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Showing posts from 2016

Average True Range (ATR) Indicator Tutorial

Average True Range - A technical indicator that is designed to measure the volatility (or variation) of a financial instrument. Originally, it was intended for futures on raw materials, as During development (1978) on the US market for goods and raw materials were much more volatile than stocks .
Average True Range has not been developed in order to predict the direction of movement of the tool. Moreover, the average true range is not intended to make any forecast at all. The average true range is designed exclusively to describe the current volatility (volatility) of the instrument, and is made as an additional tool of technical analysis , which should be used only in combination with other technical indicators and overlays. In other words, the average true range - an auxiliary tool for the analysis of a financial instrument.
It is important to understand that, by virtue of the fact that the indicator is based on the calculation of absolute numbers, the value of the indicator will vary…