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Momentum & Indicators

ATR (Average True Range)

ATR measures volatility as the average size of the daily price range over a period, usually 14 candles.

Also known as: average true range

The true range of a candle is the largest of its high minus low and the gaps from the previous close, so it counts overnight jumps. ATR averages it, giving a price-based measure of how far a coin typically moves in a day.

Traders use it to set stops (a multiple such as 2x ATR below entry) and to size positions so that a volatile coin gets a smaller one. Read the ATR guide.

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