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Posted on Aug 25, 2015 at 09:57 PM
learn to use Average True Range to determine the degree of price volatility
Average True Range (ATR) is a technical analysis volatility indicator originally developed by J. Welles Wilder JR. for commodities. The indicator simply helps determine the degree of price volatility.
During the price fall caused by the abundand sales, Average True Range often reaches very high rates. The indicator is at its lowest level during the horizontal movement which often occurs during consolidation at the top point of the market.
It is determined by the same rules as other volatility indicators. The lower the indicator rate, the more likely that trend direction will weaken and the higher the indicator rate, the more probable that trend will reverse. This is the method of forecasting using Average True Range.