Average True Range Bitcoin Analysis & ATR Bitcoin Signals
Created and Developed by J. Welles Wilder
This btcusd indicator is a measure of volatility - it measures the range of bitcoin price movement for a particular bitcoin price period. The ATR is a directionless indicator & it doesn't determine the direction of the Bitcoin trend.
High ATR indicator values
High Average True Range indicator values indicated market bottom after a selloff.
Low ATR indicator values
Low Average True Range values showed extended periods of sideways bitcoin price movement - Bitcoin Price Range, like those found at ==22==the market tops & consolidation periods. Low ATR values are typical for the periods of sideways movement of long duration which happen at the top of the btcusd market and during consolidation.
Calculation
This btcusd technical indicator is calculated using the following:
- Difference between the current high and the current low
- Difference between the prior closing bitcoin price and the current high
- Difference between the prior closing bitcoin price & the current low
The final Average is calculated by adding these values & calculating the average.
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Average True Range indicator can be analyzed using the same principles as other volatility indicators.
Possible bitcoin trend change signal - The higher the value of technical indicator, the higher the probability of a bitcoin trend change;
Measure of bitcoin trend momentum - The lower the indicator's value, the weaker the bitcoin trend movement.
Analysis in Bitcoin Trading
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