What is an indicator and what does it do?

Indicators are statistics used to measure current conditions as well as to forecast financial or economic trends. In the world of investing, indicators typically refer to technical chart patterns deriving from the price, volume, or open interest of a given security.

What is the average true range (ATR)?

Average true range (ATR) is a technical analysis tool that traders might use to assess the volatility of a stock, bond, commodity, or other security.It usually represents the 14-day moving average of the difference between the daily high and low price.

What is the average true range of a stock?

The Average True Range is a trading term used to the measure the volatility of a stock or index. These calculations of the true range are done for the five most recent trading days and are then averaged to calculate the first value of the five-day ATR.