Average True Range
The average true range is a moving average of a stock's true range for the day. A stock's true range is the high of the day minus the low of the day, if we pretend that yesterday's close was part of today's range. This is a very simple way to estimate the volatility of a stock without using intra-day data or complicated formulas.
Trade-Ideas presents a stock's average true range on our free stock screener. We also allow you to filter by the average true range in our real-time software.
Trade-Ideas also computes volatility directly, and gives you access to that. Although average true range is available, we recommend that you look at volatility as an alternative.
