Average Real Range
Average Real Range The actual average range indicates the volatility of a currency pair. In the foreign exchange market, the volatility measure is very important because it is related to direct market movements. In any financial market, increasing volatility indicates a market reversal and decreasing volatility indicates the continuation of the market. The spread of a stock is the difference between its high and its low on a given day. Provides information on the volatility of a stock. Large ranges indicate high volatility and small ranges indicate low volatility. The range of options and commodities (high minus low) is measured in the same way as for stocks. How Does this Indicator Work? A rising ATR indicates greater volatility in the market, with the range of each bar increasing. A reversal with a rise in ATR would indicate the force behind that move. ATR is not directional, so expanding ATR may indicate buying or selling pressure. High ATR levels are usua...