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True range, ATR and Supertrend
হালনাগাদ 4 আগস্ট 2026 · 3 মিনিটের পাঠ · 14 বিষয়বস্তু
সহজ ভাষায় অর্থ
Average True Range measures smoothed bar range including overnight gaps; it has magnitude but no direction. Supertrend uses ATR-based bands and recursive state rules to place an active trailing line above or below price.
Learning objectives #
You should be able to calculate true range, distinguish ATR from normalized ATR, explain XMarketRadar's Supertrend defaults and separate a fresh flip from a continuing state.
Core concept #
True range is max(high−low, |high−previous close|, |low−previous close|). Seed ATR with the average of the first N true ranges, then apply Wilder smoothing. NATR=ATR/close×100. XMarketRadar Supertrend defaults to period 10, multiplier 3 and recursively trails bands around (high+low)/2.
Method and conventions #
Use ATR for comparable range context or scale-aware zones, not direction. For Supertrend, record period and multiplier and define whether research concerns line position, current state or flippedOnLastBar. A line is not a guaranteed stop.
Use it in XMarketRadar #
Add ATR or Supertrend, inspect configuration and completed-bar state, then compare with price and history. The Technical Indicator Scanner publishes state and available-count context; open the chart before interpreting any row.
Worked example #
If high=105, low=100 and previous close=98, true range=max(5,7,2)=7 because the overnight gap matters. If midpoint is 100 and ATR(10)=4 at multiplier 3, basic Supertrend bands begin at 112 and 88 before recursive trailing rules.
How to interpret it #
Higher ATR means wider recent movement in price units, whether price rose or fell. Bullish Supertrend means the active line is below price under the formula; flipped means the state changed on the newest completed bar.
Limitations and common mistakes #
Do not treat ATR as direction, compare raw ATR between unlike price scales, count every continuing Supertrend bar as a new event or assume the displayed line will execute as a loss limit.
Market-specific differences #
Overnight gaps, price limits and continuous trading differ by venue. NATR supports proportional comparison, but session structure and interval remain essential context.
Key takeaway #
Key takeaway: ATR measures range; Supertrend converts an ATR convention into a trailing formula state. Neither estimates a probability of gain.
Practice exercise #
Practice: calculate true range for a gapped candle, identify fresh versus continuing Supertrend states across three bars, and explain why raw ATR is not cross-price comparable.
Educational use only #
This chapter is descriptive education. It is not investment advice, a price prediction, a recommendation, a claim of predictive accuracy, or an instruction to buy, sell, rebalance or place an order.