Average True Range (ATR) indicator.
Range of any candle is a difference between its High and Low price. J. Welles Wilder introduced a concept called True Range. Formula of True Range: Maximum of (Current High – Current Low, Current High – Prev Close, Current Low – Prev Close). The average price of true range over last several candles is known as Average True Range. 14-day period suggested by Wilder is popular and widely used parameter for ATR. ATR indicator is used to measure volatility. It is also used by traders while determining the stop-loss. But if I want to compare c...