# What Is the Average True Range (ATR)?

By [Trading Tips](https://paragraph.com/@trading-tips) · 2021-10-08

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The average true range (ATR) is a technical analysis indicator, introduced by market technician J. Welles Wilder Jr. in his book _New Concepts in Technical Trading Systems,_ that [measures market volatility](https://www.investopedia.com/articles/trading/08/average-true-range.asp) by decomposing the entire range of an asset price for that period.1

The true range indicator is taken as the greatest of the following: current high less the current low; the [absolute value](https://www.investopedia.com/terms/a/absolute-value.asp) of the current high less the previous close; and the absolute value of the current low less the previous close. The ATR is then a [moving average](https://www.investopedia.com/terms/m/movingaverage.asp), generally using 14 days, of the true ranges.

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*Originally published on [Trading Tips](https://paragraph.com/@trading-tips/what-is-the-average-true-range-atr)*