What is (ATR)?
The (ATR) is a indicator, introduced by market technician J. Welles Wilder Jr. in his book New Concepts in Technical Trading Systems, that measures market by decomposing the entire range of an asset price for that period.1
The true range is taken as the greatest of the following: current high less the current low; the absolute value of the current high less the previous close; and the absolute value of the current low less the previous close. The ATR is then a moving average, generally using 14 days, of the true ranges.
What are Channel (ATR)?
are volatility-based bands that are placed on either side of an asset's price and can aid in determining the direction of a trend.
The channel uses the average-true range (ATR) or , with breaks above or below the top and bottom barriers signaling a continuation.
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