| Average True Range |
| Average True Range is an indicator from J. Welles Wilder that measures commitment by comparing the range for each successive day. Expanding and contracting ranges signal eagerness in a trending market. |
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Trading Signals |
High values are normally found just before market tops and bottoms.
Low values are usually found in ranging markets.
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EXAMPLE |
Microsoft Corporation with  14 day exponential moving average of Average True Range. |
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- Average True Range peaks before price bottoms.
- Low readings - the market is ranging.
- Average True Range peaks before the market top.
- 4. Average True Range peaks after a secondary rally.
- 5. Average True Range peaks during the early stages of a major price fall.
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Setup |
The default Average True Range window is 14 days. To alter the default settings - Edit Indicator Settings.
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See Indicator Panel for directions on how to set up an indicator. |
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