Average True Range technical indicator is denoting the market volatility level. The indicator introduced by Welles Wilder is used as a part of other indicators and trading systems.
ATR often reaches high rates in the market bottoms after the panic-caused rates’ dramatic fall. Continued horizontal movements on market tops and in consolidation periods are market by low indicator’s rates. ATR rate increase means that the trend is about to change, and decrease means that the trend will continue.
