Trade Forex Trading

Learn Forex Trading

Average True Range - ATR Forex Technical Analysis and ATR Forex Trading Signals

Developed by J. Welles Wilder


This indicator is a measure of volatility - it measures the range of price movement for a particular price period. The ATR is a directionless indicator and it does not determine the direction of the Forex trend.

Average True Range (ATR) Technical Indicator


High ATR values

High Average True Range values indicated market bottoms after a sell off.



Low ATR values

Low Average True Range values showed extended periods of sideways price movement- Price Range, such as those found at market tops and consolidation periods. Low ATR values are typical for the periods of sideways movement of long duration which happen at the top of the market and during consolidation.




This indicator is calculated using the following:


  • Difference between the current high and the current low


  • Difference between the previous closing price and the current high


  • Difference between the previous closing price and the current low


The final Average is calculated by adding these values and calculating the average.



Forex Technical Analysis and Generating Forex Trading Signals


Average True Range can be interpreted using the same principles as other volatility indicators.


Possible trend change signal - The higher the value of the indicator, the higher the probability of a trend change;

Measure of trend momentum - The lower the indicator’s value, the weaker the trend movement.


Technical Analysis of Average True Range (ATR)- Sell and Buy Signals

Technical Analysis

Up To $6.67 Dollars Bonus for Every Lot Traded Get Up To $6.67 For Every Lot Traded

Market Outlook: Very Bullish for EURUSD, and EURJPY - Also for GBPUSD, GBPJPY, and AUDUSD (No Need For Technical Analysis - This is Risk Appetite -Risk Averse Speculation).

Do Not Be Left by This Opportunity: Open an account and start buying Euros and position yourself early - Risk appetite speculation has already started. - Others are already profiting - Read the article How to Fast Track Account Opening and Open an account now.

Strategy: Buy the retracements and use 1 Hour and M15 Charts to look for best entry and exit points - Also checkout Money Management Rules.

Poland FX Seminar Gala

XM Account Holders Attend Poland FX Seminar

Malaysia Seminar

XM Account Holders Phillipines Seminar

XM Account Holders Thailand Seminar

Malaysia Forex Seminar

Hungary Forex Seminar

Greece Forex Seminar

XM Account Holders Hungary Seminar

XM Account Holders Thailand Seminar

European Forex Broker XM is Licensed and Regulated in 12 Countries; 10 European Countries, Australia and UK

XM Forex Broker Regulation Licenses

Should you open an XM Account this is exactly how it looks like:

Forex Account Secure Clients' Area - Trader Cabinet

Up To $6.67 Dollars Bonus for Every Lot Traded

Loyalty Bonus Points - Up To $6.67 Dollars Bonus For Every Lot Traded

Bonus Points

Forex Trading Accounts Members Area - Withdraw and Deposit Options

Real Forex Trading Account Withdraw and Deposit Options

XMP Forex Loyalty Bonus Program

Silver and Gold Online Trading

CFDs Trading and Forex Trading

50% and 20% Bonus

$5,000 Forex Bonus

Bonus Points

Regulated Broker