01 · Indicator · ATR
What is ATR (Average True Range)?
Created by J. Welles Wilder in 1978, ATR measures the average size of candles, including opening gaps.
It says nothing about direction: it shows how much the market moves.
02 · Indicator · ATR
The calculation
True Range = max(High − Low, |High − previous close|, |Low − previous close|). ATR = 14-period smoothed average.
GraphTrade shows it as a percentage of price to compare assets.
03 · Indicator · ATR
Reading the signals
A rising ATR flags a turbulent market; an ATR at lows often precedes expansion.
It is mostly used to size a stop or position, for example 1.5 × ATR.
04 · Indicator · ATR
Settings and combinations
ATR (%) is adjustable in the Volatility group. It pairs well with: Supertrend, Keltner Channel, Bollinger Bands.
To put the signal in context, check the Heatmap, the news or ask the AI Compass. No indicator is investment advice.
◆ Step by step
Get started in 4 steps
- 01
Open a chart
Search for an asset on the Charts page and pick a timeframe.
- 02
Add the indicator
Open Indicators, Volatility group, then click ATR.
- 03
Adjust the settings
Change the parameters in the indicator sheet to suit your horizon.
- 04
Confirm the signal
Cross-check with the main trend and another indicator before concluding.
◆ FAQ
Your questions, clear answers.
01Does ATR show trend?
No, only volatility.
02Why as a percentage?
To compare Bitcoin and a stock on the same scale.
03How to set a stop with ATR?
Often 1.5 to 3 ATR from entry.