Description

• Introduced by J. Welles Wilder, ATR measures simply the degree of price movement (volatility)
• PcntATR is a moving average of % Range of stock and helps to understand average movement of stock over specific period
• It is simply showing ATR in % instead of absolute number

Interpretation

• High pcntATR value indicates high degree of price movement
• Low pcntATR value indicates low degree of price movement
• Slope of ATR helps to understand expected degree of volatility in coming periods

Default Parameters Used/Inputs

• High Line
• Low Line
• Close Line
• Bars

Returns/Output

Percentage Average True Range of stock for the period

Formula

PcntATR = ATR / Close Rate