Average True Range (ATR) measures the average size of each bar's range over a lookback period, including gaps. It is a pure volatility gauge — it says nothing about direction, only how much an instrument typically moves.
How traders use it
- Size stop-losses to volatility instead of a fixed number of points.
- Compare ATR across instruments to normalise position sizing.
- Rising ATR signals expanding volatility; falling ATR, a calming market.
See it in dtcharts
Add ATR from the indicators panel in the dtcharts terminal, or grab ready-to-paste code for MetaTrader, TradeStation and TradingView in the ATR Traders' Tips article.