Forex glossary

Average True Range (ATR) in Forex

A clear definition of Average True Range (ATR), with practical context for reading markets and making better trading decisions.

Level 4 · Give Indicators a JobForex basics

Definition

A volatility measure showing the average distance price has travelled per period. It helps make stops and targets realistic for current conditions.

If daily ATR is 100 pips, a 10-pip daily stop may be unrealistically tight.

Understanding Average True Range (ATR) helps traders interpret market information, plan decisions, and manage risk with more context.

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