Tag: Average

Average is a term used to describe an amount, typically a number, derived by calculating the sum of a group of values and then dividing that number by the total number of values in the group. Average is often used to compare results across groups of data or as a way to measure progress towards goals. Average can apply to assignments, test scores, economic indicators, or anything that can be measured numerically. For example, the average test score of a high school class can tell the teacher how the class is doing as a whole. Understanding and using averages can help to quickly interpret data.

Categories: Formula

Average True Range Formula: Understanding Forex Trading

by Penny Grimes

Average True Range (ATR) is a technical indicator that measures the volatility of a currency pair in the Forex market. ATR is an important element in many trading strategies, as it reflects the degree of price movement over a given period, which can be used to enter or exit trades. The formula for ATR was developed by J. Welles Wilder and is calculated by taking the average of the true high-low range over a given period, usually 14 days. The ATR is a good indicator of the overall market volatility trend and is often used to gauge entry and exit points for trades.

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