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Average True Range Indicator
03.01.2012
The Average True Range (ATR) determines an instruments volatility over a given time period. The ATR is displayed as a value, high values tend to be when the market drops due to panic selling. Whereas low values are typical for periods of sideways movement which happen at the top of the market or during consolidation. ATR can be interpreted in a similar manor to other volatility indicators – the higher the value, the higher the probability of a trend change. Lower values indicate weak trend movement.
True Range is calculated as the greatest of the following three values:
- difference between the current maximum and minimum (high and low);
- difference between the previous closing price and the current maximum;
- difference between the previous closing price and the current minimum.
If you wish to apply the ATR indicator to a chart then go to:
Trading > Charts >
> Oscillators > Average True Range (ATR)
Like all other indicators in the Citi FX Pro platform, there are a range of settings which can be fully adjusted to suit your own personal preferences. As you can see from the screenshot below, it is possible to adjust how the ATR is calculated as well as how it’s displayed on the chart.
The screenshot below shows the ATR indicator applied as a separate pane on the EURUSD chart. If at any point you wish to delete or adjust the indicator click on the ATR sign on the top left of the chart.
If you want to save the study or export it then right-click on the chart, go Chart >:
- This saves the study as StdSP file which can be re-opened using the Citi FX Pro platform software.
- This will save the study to your clipboard, allowing you to copy into another document or email.
- This will save the ATR study as an image file.