Average True Range, The Swiss Army Knife of Technical Analysis

By closely examining an asset’s past price action, through charts and studies, traders may be able to predict future price movements. There are a wide variety of technical analysis indicators which can be used to help identify new trends, price reversals, and changes in momentum, but this webinar will focus on perhaps the most versatile of the lot; Average True Range (ATR).

Average True Range, developed by J. Welles Wilder, is an indicator that measures volatility. In reality, it is so much more! There are several reasons why both day traders and long-term investors will appreciate ATR’s versatility. First, ATR is a proxy for changing volatility to confirm emerging trends. Second, ATR can be used in risk management to help set exit stops. Finally, ATR is a day trader's best friend because it helps with timing better entries, exits, and targets. One could argue that Average True Range is the Swiss Army Knife of technical analysis.

Join Barchart's Head of Trading Education, John Rowland, as he demonstrates some of the multiple uses of Wilder's Average True Range. John will explain how day traders can rely on ATR’s predictability to identify potential turning points, entries, exits, and targets, and how swing traders can use ATR to confirm breakouts and potential emerging trends. Finally, long-term investors can use ATR in risk management when setting trailing stops.

In this webinar, you learn about:

Calculating Average True Range
Applying ATR to day trading concepts
Using ATR as a price filter for confirmation of breakouts
Risk management strategies

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