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) / nATR_{seed}=\frac{1}{n}\sum_{i=1}^{n}TR_i| Symbol | Meaning | Unit |
|---|---|---|
TR_i | ready True Range value i | price units |
n | ATR period | bars |
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
Required by
Where this concept is used
Evidence and governance
- 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.
- 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