ClearPath Trader

ATR (Average True Range)

Average of true range (high-low accounting for gaps). Measures volatility only—not direction. Widely used for stop distances and position sizing.

Category: Volatility · Complexity: ★★☆☆☆ (2/5)

Tags: volatility, live-overlay, volatility

Live chart overlay: ATR

ATR (Average True Range) chart illustration

Formula

TR = max(H−L, |H−C_prev|, |L−C_prev|); ATR = Wilder smooth of TR

How to read

Volatility only. Rising ATR = larger bars. Used for stops (e.g. 2×ATR) and position sizing, not direction.

Limitations

No bullish/bearish meaning. Spikes after gaps.

Typical settings

14

ATR (Average True Range) is part of the ClearPath Encyclopedia of Indicators — 190 models explained with standard SVG illustrations, so you can study an indicator before you put it on a live chart.

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