FTB-C000476 / Indicator

Normalized Average True Range

Normalized Average True Range expresses ATR relative to the current close, commonly in percent units.

Also known asNATR

Intermediate Formula defined 1 linked topicPublished

Definitions

In plain terms

It removes the direct quote-scale effect that makes raw ATR values hard to compare across differently priced instruments.

Technical

A common contract is 100 times ATR divided by close and must define the price denominator, positive-denominator rule, ATR variant, and readiness intersection.

Scope

Normalization improves scale comparability but does not make different instruments, sessions, or horizons economically identical.

Formula

NATR = 100 * ATR / close
LaTeX: NATR_t=100\frac{ATR_t}{C_t}
SymbolMeaningUnit
ATR_tcurrent Average True Rangeprice units
C_tcurrent closeprice units

Output unit: percent

Examples

  • A reviewer traces Normalized Average True Range from aligned inputs through its first-ready row and edge cases before accepting a displayed value.

Common misconceptions

  • Normalization improves scale comparability but does not make different instruments, sessions, or horizons economically identical.

Concept relationships

Prerequisites

Related

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

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

    Limits: Normalization does not establish economic comparability across instruments, sessions, or lookback choices.

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.