Average true range (ATR) is a technical indicator, that measures and shows volatility market, developed by J. Welles Wilder in 1978 (book - New Concepts in Technical Trading System). This book also includes the RSI, Concept ADX and Parabolic SAR. Indicator Average true range is an N-day exponential moving average of the true range values. The indicator Average true range (ATR) can be used to develop a complete trading system or be used for entry or exit signals as part of business strategies. Average true range (ATR) captures the missing of volatility, does not provide an indication of price and trends, but shows only the volatility.
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