ATR
Average size of the true range, a volatility measure. Sets stop distance to market noise.
About
Average True Range (ATR) is the average of true range over a lookback. True range is the greater of the bar's high-low span and the gaps from the prior close. It measures volatility, not direction.
A rising ATR means bars are getting larger. A falling ATR means they are compressing. ATR does not say whether price will continue or reverse.
Add ATR to a mix for stop distance, volatility filters, or to require expansion before a breakout entry. Pair it with a directional signal so ATR is the size of the move, not the reason to trade.
Mixes using ATR
ATR Expansion CrossTSLA1 day
Enter when short-term ATR rises above long-term ATR (volatility expanding); exit on the opposite cross.
ATR Filtered SMA CrossQQQ1 day
Enter when the fast SMA crosses above the slow SMA while short-term ATR runs above long-term ATR; exit on the SMA cross down.
ATR Contraction FadeIWM1 day
Enter when short-term ATR drops below long-term ATR (volatility contracting); exit when expansion returns.