Average True Range (ATR)

Plain-language meaning

ATR measures bar-to-bar range including overnight gaps; XMarketRadar uses Wilder's recursive smoothing.

Why it is useful

Average True Range (ATR) is useful as descriptive evidence when it is compared on the same definition, source, period, unit and exact listing. It is one input to research, not a verdict.

Where it appears in XMarketRadar

Look for Average True Range (ATR) in Advanced Chart settings, indicator panels, screeners and technical research for the selected listing and bar interval.

How it is calculated or sourced

True range is the largest of high−low, |high−previous close| and |low−previous close|. Seed ATR with the simple average of the first N true ranges, then apply Wilder smoothing: new ATR = (prior ATR×(N−1)+true range)/N.

Inputs, period and unit

Read the disclosed inputs or source, observation period, bar interval, unit, native currency and scale. A value without its source and as-of context is incomplete; unlike units must not be combined.

Worked example

Illustrative only: If today's high is ₹105, low ₹100 and the previous close ₹98, true range is max(5, 7, 2) = ₹7 because the overnight gap matters. ATR then smooths this value with earlier true ranges.

What high and low mean

A higher or lower Average True Range (ATR) value is descriptive, not automatically good or bad. Meaning depends on the instrument, comparison period, method and related evidence.

Positive, negative and genuine zero

Positive and negative Average True Range (ATR) values retain the definition shown here. A genuine reported or computed zero is displayed as 0 and is not the same as missing evidence.

When it is unavailable

Unavailable (—) means Average True Range (ATR) is absent, unsupported, stale under the screen's rules or not computable from verified inputs. It must never be converted to zero or a neutral signal.

Limitations and common mistakes

Settings, warm-up history, adjusted-price basis and smoothing convention materially change results. Do not compare differently configured indicators as if identical. Partial bars and corporate-action discontinuities can create misleading moves.

Market-specific differences

The concept is used across all supported markets, but currency, price scale, session calendar, source field and regulatory definition can differ. XMarketRadar preserves the exact exchange context.

Related terms

Use the related-term links on this page to compare Average True Range (ATR) with neighbouring definitions while retaining each term's distinct source, unit and limitations.

Suggested next steps

Open the related Technical analysis terms below, then follow the matching Help Centre task guide and inspect Average True Range (ATR) on an exact exchange listing. Confirm source, as-of time, units and unavailable reason before using it in research.

Educational information only; not investment advice or an order service.

This Average True Range (ATR) tutorial is educational and descriptive. It is not investment advice, a price prediction, a recommendation, or an instruction to buy, sell, rebalance or place an order.