Average True Range Technical Indicator (ATR) is an indicator that shows volatility of the market. It was introduced by Welles Wilder in his book “New concepts in technical trading systems”. This indicator has been used as a component of numerous other indicators and trading systems ever since.

Average True Range can often reach a high value at the bottom of the market after a sheer fall in prices occasioned by panic selling. Low values of the indicator are typical for the periods of sideways movement of long duration which happen at the top of the market and during consolidation. Average True Range can be interpreted according to the same principles as other volatility indicators. The principle of forecasting based on this indicator can be worded the following way: the higher the value of the indicator, the higher the probability of a trend change; the lower the indicator’s value, the weaker the trend’s movement is.

Here’s a chart using the ATP:

This week we will have a lot of posts about trading online, this can be a great option even if you have a very small amount of money. You can trade stocks and currencies (forex) from different countries and markets online, and commodities.

Online forms of withdrawing and depositing money make it very quick, but you have to be aware that if you don’t have the minimum knowledge, you will eventually lose money, and that’s not we are here for.

We will have new sections on the website about trading strategies and other resources, but of course, we will continue with the tutorials and we will keep adding material to the site, that’s it!