ATR

ATR, or Average True Range, is a financial metric that measures market volatility. It calculates the average range between the high and low prices of an asset over a specified period, considering any gaps or price jumps. Essentially, ATR helps traders understand how much an asset's price tends to fluctuate, providing insight into potential risk and price movement. A higher ATR indicates more volatile trading, while a lower ATR suggests steadier price action. It's used to set stop-loss levels and assess market conditions without indicating the direction of price forecasts.