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Average True Range Percent (ATRP)

Description

Average True Range Percent (ATRP) expresses the Average True Range (ATR) indicator as a percentage of a bar’s closing price.

How this indicator works

  • ATRP is used to measure volatility just as the Average True Range (ATR) indicator is. ATRP allows securities to be compared, where ATR does not.
  • ATR measures volatility at an absolute level, meaning lower priced stock will have lower ATR values than higher price stocks. ATRP displays the indicator as a percentage, to allow for securities trading at different prices per share to be compared.

Calculation

ATRP = (Average True Range / Close) * 100

Related Indicators

  • Average True Range (ATR)

    ATR is the average of true ranges over the specified period. ATR measures volatility, taking into account any gaps in the price movement.

  • Moving Average Envelope (MAE)

    Moving Average Envelopes are lines plotted at a certain percentage above and below a moving average of price.

Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your investments, you must make your own determination as to whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results.

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