Average True Range (ATR) graph is indicator of volatility. ATR is a unique volatility indicator that reflects the degree of interest or disinterest in a move
Points to remember:
- High cost shares will have higher ATR than low cost shares
Use:
- When used with other charts this chart can help in identifying/validating the enthusiasm behind a move or breakout. For example, A bearish support break with an increase in ATR would show strong selling pressure and reinforce the support break.
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