TRADING GLOSSARY
Average true range
Average true range (ATR) measures volatility by smoothing true range over a chosen period. True range is the greatest of the current high minus low, the absolute high minus previous close, or the absolute low minus previous close. ATR does not indicate price direction.
EXAMPLE
In a hypothetical session, the high is 105, the low is 101, and the previous close is 99. True range is 6, which feeds into ATR.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure