Average True Range Percentage

Description average true range percent atrp expresses the average true range atr indicator as a percentage of a bar s closing price.

Average true range percentage.

Atrp is used to measure volatility just as the average true range atr indicator is. As is it average true range of an instrument can be easily compared to any other because of absolute percentage variation and not prices itselves. Usually the average true range atr is based on 14 periods and can be calculated on an intraday daily weekly or monthly basis. The average true range formula looks as.

How this indicator works. Moving average envelope mae moving average envelopes are lines plotted at a certain percentage above and below a moving average of price. Atr measures volatility taking into account any gaps in the price movement. Atrp allows securities to be compared where atr does not.

Typically the atr calculation is based on 14 periods which can be intraday daily weekly or monthly. Average true range atr atr is the average of true ranges over the specified period. It is typically derived from the 14 day moving average of a series of true range indicators. To measure recent volatility use a shorter average such as 2 to 10 periods.

Atr measures volatility taking into account any gaps in the price movement. Average true range atr is a technical indicator measuring market volatility. Average true range atr is the average of true ranges over the specified period.