What it does
ATR measures volatility, not direction. Each bar's true range is the largest of: high minus low, high minus previous close, or previous close minus low, which captures overnight gaps as well as intrabar movement. ATR is a smoothed average of true range over the lookback, normally 14 bars, expressed in the instrument's price units.
Typeoscillatorseparate pane
How to add it
Click Indicators (ƒx) in the header.
Search “Average True Range” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Size stops with volatility: placing a stop 1.5 to 2 ATR beyond entry keeps it outside normal noise instead of at an arbitrary fixed distance.
- Size positions: risking a fixed cash amount per 1 ATR of stop distance normalizes risk across instruments with different volatility.
- Use ATR trailing stops (chandelier exits) that follow the trend at a multiple of ATR from the highest high.
- Detect regime change: a sharp ATR expansion confirms a breakout is genuine, while multi-week ATR contraction often precedes a large move.
- Set realistic targets: expecting an intraday move much larger than the daily ATR is usually wishful thinking.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Length | number | 14 | 1–2000 |
| Smoothing | select | RMA | RMA / SMA / EMA / WMA |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| ATR(14) | line | #801922 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- Merge multiple oscillators into one pane from the legend ⋯ menu to compare them on a shared axis.
- Double-click the plot to open settings directly, skipping the legend hover.
- The pane keeps its height in saved layouts, so size it once and it survives reloads.
Watch out for
- ATR says nothing about direction; rising ATR happens in crashes and rallies alike.
- Because it is a moving average of ranges, it reacts to volatility shifts with a lag.