TRADING THE AVERAGE TRUE RANGE

摘要

The Average True Range (ATR) is a measure of volatility that was introduced by J. Welles Wilder in his book, "New Concepts in Technical Trading Systems" in 1978, and has since been used as a component of many indicators and trading systems. The average true range indicator is an oscillator, meaning the ATR will oscillate between peaks and valleys. The ATR has no upper or lower limit bounds like the classical technical indicators: Relative Strength Index (RSI) or slow stochastic. The ATR is comprised of three inputs, which are helping identify the volatility of a security. To determine the level of volatility there are three ranges included in the equation.