Average True Range Formula: Understanding Forex Trading

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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