13. Learn The Average True Range (ATR)

What you will learn

• What is an ATR indicator 
• What Does the Average True Range (ATR) Tell You 
• How to Insert ATR in your graph 
• Use of the ATR Indicator in Forex Trading 

Description

This class will introduce you to the Average True Range (ATR) Indicator.  

Waldes Wilder developed the ATR to measure price volatility in commodities markets, where volatility is prevalent. It is now used increasingly in forex trading to predict how far a currency price can move in the future to decide when to place stop-loss or take-profit orders.  

The Average True Range indicator is popular among technical traders as a way to quickly identify market volatility quickly. It appears as a single line in a box underneath a market’s chart. As the line rises, it signifies an increase in market volatility. As the line drops, volatility decreases. Traders should not rely exclusively on the ATR indicator, but they can include it in their trading strategies.