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Description |
To understand the concept of the Average True Range study, you must first understand the concept of Wilder's True Range concept. True Range is the difference between the high and low unless the previous bar's close falls outside the current bar's range. If it does, it serves as the high or low, depending on whether it's greater than the current high or less than the current low, respectively.
Average True Range is an average of True Range values over a specified number of bars.
This study uses price range to measure volatility. The Average True Range peaks during volatile trading and bottoms during periods of relative stability. |
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Formula |
AverageTrueRange2(SERIES, Length=14)=begin retval = Average($1, BATE_TRUERANGE, Length) end |
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Parameters |
SERIES The SERIES directive makes this formula available as a Formula Study. SERIES refers to the instrument in a chart. SERIES does not become a study parameter.
Length The length parameter is the number of periods to calculate the average. The default is 14. |
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Return Value |
An Average True Range value. |
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Examples |
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Comments |
NA |
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