FOREX THEORY
How to Measure Volatility
3. Average True Range (ATR)
Last on the list is the ATR.
The ATR is an excellent tool for measuring volatility
because it tells us the average trading range of the market for X amount of
time, where X is whatever you want it to be.
So if you set ATR to 20 on a daily chart, it would show you
the average trading range for the past 20 days.
Use ATR to measure price volatility.
When ATR is falling, it is an indication that volatility is
decreasing. When ATR is rising, it is an indication that volatility has been on
the rise.
 Last on the list is the ATR. Th...){kind=link}
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