Average True Range — the average of the true range, measures market volatility.
Average True Range (ATR) averages the True Range over n periods using Wilder’s smoothed moving average. ATR does not show the direction of price movement — only volatility. It is used to set stop-losses, determine position size, and filter signals.
Formula:
TR = max(High - Low, |High - Close_prev|, |Low - Close_prev|)
ATR = RMA(TR, period) [Wilder smoothing: ATR = ATR_prev * (n-1)/n + TR/n]
Parameter Type Default Range / Values Periodint 14 1-200
Trigger Direction Condition Description Level cross up 🟢 Buy The indicator value crossed the set level from below. The ATR line crosses the configurable Level from below. Level is set in the trigger parameters. Level cross down 🔴 Sell The indicator value crossed the set level from above. The ATR line crosses the Level from above. Level is set in the trigger parameters. Value above level by N 🟢 Buy The indicator value rose above the level by a set distance. The ATR line crosses the Level + Distance mark, moving upward. The distance delays entry until the level breakout is confirmed. Value below level by N 🔴 Sell The indicator value dropped below the level by a set distance. The ATR line crosses the Level − Distance mark, moving downward. Value rising 🟢 Buy The indicator value is rising relative to the previous bar. The ATR line on the current bar is higher than on the previous one — upward momentum. Value falling 🔴 Sell The indicator value is declining relative to the previous bar. The ATR line on the current bar is lower than on the previous one — downward momentum. Fires on every declining bar. Slope turns positive 🟢 Buy The indicator’s slope turned positive — an upward reversal. The ATR line changes its slope from descending to ascending — the indicator has stopped falling and started rising. Slope turns negative 🔴 Sell The indicator’s slope turned negative — a downward reversal. The ATR line changes its slope from ascending to descending — the indicator has stopped rising and started falling.
Parameter Type Default Range / Values Distance (Value above level by N, Value below level by N)float 0 0> Level (Value above level by N, Value below level by N, Level cross up, Level cross down)float 0
