Definitions
In plain terms
Wilder's common variant uses an arithmetic seed followed by alpha-one-over-n recursive smoothing.
Technical
The implementation freezes true-range inputs, period, smoothing type, seed, readiness, missing bars, adjustment basis, and precision.
Scope
ATR measures range magnitude and does not identify price direction.
Formula
Wilder ATR_t = ATR_(t-1) + (TR_t - ATR_(t-1))/nATR_t=ATR_{t-1}+\frac{TR_t-ATR_{t-1}}{n}| Symbol | Meaning | Unit |
|---|---|---|
ATR_(t-1) | prior average true range | price |
TR_t | current true range | price |
n | ATR period | observations |
Output unit: price
Examples
- A governed lesson calculates or identifies Average True Range only after its parameters, state, timing, and edge cases are declared.
Common misconceptions
- ATR measures range magnitude and does not identify price direction.
Concept relationships
Prerequisites
Related
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.
- Reviewed by
- fintech-builder-batch-007
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- evidence reviewed
This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.