Average true range

How much a stock normally moves in a day

In detail

It averages the daily range over a period, so you can see what is ordinary movement for that stock. It also lets you compare how much two very differently priced stocks actually move. Many people size their stop distance from it.

Example

A $10 stop on a stock with an ATR of $30 is tighter than usual.

Related terms

Read in the app (App Store)

For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.