VOLATILITY, DISPERSION & CANDLES
ATR (Average True Range)
How many dollars the symbol actually moves in a day, gaps included.
spec id: atrlength (default 14)
What does ATR measure?
How much the stock typically moves in one candle — its temperament. Traders use it to size stops so a normal wiggle does not knock them out.
How is ATR calculated?
For each candle, measure the full stretch it covered, counting any gap from the previous close. Then average those stretches over 14 candles with a running average that keeps most of yesterday's value.
Written by reading the engine’s real computation, not a textbook — where the two differ, the page describes what actually runs.
How do traders read ATR?
Traders size stops in ATRs (e.g. 2× ATR) so a normal wiggle doesn't stop them out. Rising ATR = market getting wilder.
The honest caveat
ATR is a ruler, not a signal — it says how far, never which way.
How do I use ATR in a bot?
Add indicator → ATR, set period (default 14). atr20 also exists as a built-in feature.
Related indicators
- Bollinger widthHow wide the Bollinger Bands are right now.
- Candle bodyThe size of the candle's solid block — the distance from open to close.
- BollingerA price channel that hugs the stock.
- Chaikin volatilityHow fast the market's daily range is expanding or shrinking, in percent.
Or browse all 158 indicators in the full library.