Average True Range Formula
The average true range formula records the maximum values of the following three differences, and calculates the moving average of the resulting data series:
-
Between the previous day's high and low prices.
-
Between the previous day's close price and the current day's high price.
-
Between the previous day's close price and the current day's low price.
The average true range indicator is a good measure of commitment. A high value often indicates market bottom due to panic sell. A low value often indicates market top.
Syntax
Chart.DataManipulator.FinancialFormula(
FinancialFormula.AverageTrueRange,
"Period",
"High,Low,Close",
"ATR")
Parameters
This formula takes one optional parameter.
- Period
- Period for calculating the moving average of the true range values. The default value is 14.
Input Values
This formula takes one input Y value.
- High
- Daily high price.
- Low
- Daily low price.
- Close
- Daily close price.
Output Value
This formula outputs one Y value.
- ATR
- Average true range indicator.
The following example takes input from Series1's Y values for the daily high, low, and close prices (Series1:Y,Series1:Y2,Series1:Y4), and outputs the average true range indicator on Series3 (Series3:Y). It uses a period of 15 days to calculate the moving average of the true range values.
Build Date:
