Volatility Measurement also known as the ATR.
Used by traders to measure the degree of price volatility. It is generally measured using Daily Candlesticks
The true range is the largest of the:
- Most recent periods high – low
- Absolute value of the most recent period’s high – previous close
- Absolute value of the most recent periods low – the previous close
Many diverse uses by traders:
- To determine entry points
- To determine stop losses
