FTB-C000469 / Formula component

ATR Arithmetic Seed

ATR Arithmetic Seed is the simple mean of the first declared set of ready True Range values.

Also known asinitial ATRATR seed

Intermediate Formula defined 1 linked topicPublished

Definitions

In plain terms

It creates the first Average True Range state before Wilder's recursive updates begin.

Technical

The seed requires n eligible True Range values, a declared first-bar policy, no silent zero filling, and publication at the aligned first-ready row.

Scope

Changing True Range index-zero policy can shift the seed even when the smoothing period is unchanged.

Formula

ATR seed = sum(first n ready True Range values) / n
LaTeX: ATR_{seed}=\frac{1}{n}\sum_{i=1}^{n}TR_i
SymbolMeaningUnit
TR_iready True Range value iprice units
nATR periodbars

Output unit: price units

Examples

  • A reviewer traces ATR Arithmetic Seed from aligned inputs through its first-ready row and edge cases before accepting a displayed value.

Common misconceptions

  • Changing True Range index-zero policy can shift the seed even when the smoothing period is unchanged.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D07-F04-A02 Important

Evidence and governance

  1. Average True Range TA-Lib · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: Seed, smoothing convention, lookback, and missing-bar handling must be declared for reproducible use.

  2. TA-Lib Average True Range Reference Implementation TA-Lib · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: TA-Lib readiness follows its own unavailable-first-TR convention and therefore differs from the local alignment.

Reviewed by
fintech-builder-batch-009
Last reviewed
2026-07-30
Next review
2027-07-30
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.