Archived: How is the Average True Range calculated?

Expert Advisors & Indicators
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How is the Average True Range calculated?

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The ATR is calculated by finding the true range for each period, which is the greatest of the following:

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  • The current high minus the current low
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  • The absolute value of the current high minus the previous close
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  • The absolute value of the current low minus the previous close
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The ATR then smoothes these true ranges over a specified period using a moving average.