Average True Range/ATR; Measuring Volatility - ICT

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Author's Instructions

To understand the Average True Range (ATR), you must first know what True Range (TR) is. True Range refers to the largest price movement within a specific timeframe (e.g., one day) and is calculated in three ways:

  1. The distance between the current high and low
  2. The distance between the previous candle’s close and the current high
  3. The distance between the previous candle’s close and the current low

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