Definitions
In plain terms
An ATR of five price units has different relative meaning for instruments priced near ten and near one thousand.
Technical
Raw ATR is expressed in price units, is translation-invariant under a consistent additive shift, and is homogeneous of degree one under positive scaling.
Scope
Cross-asset comparison generally requires an explicitly defined normalization rather than comparing raw values.
Examples
- A reviewer traces Raw ATR Quote-Scale Dependence from aligned inputs through its first-ready row and edge cases before accepting a displayed value.
Common misconceptions
- Cross-asset comparison generally requires an explicitly defined normalization rather than comparing raw values.
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
Limits: Seed, smoothing convention, lookback, and missing-bar handling must be declared for reproducible use.
- Normalized Average True Range TA-Lib · first party technical publication
Supports: preferred label, short definition, technical definition
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