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.  For more information view our video on the Average True Range.