Average True Range can often reach a high value at the bottom of the market after a sheer fall in prices occasioned by panic selling.

Low values of the indicator are typical for the periods of sideways movement of long duration which happen at the top of the market and during consolidation.

Average True Range can be interpreted according to the same principles as other volatility indicators: the higher the value of the indicator, the higher the probability of a trend change; the lower the indicator’s value, the weaker the trend’s movement is.

Average True Range Technical Indicator (ATR) is an indicator that shows volatility of the market.

The ATR Algo Module is a Cheetah Block that integrates with the Cheetah Framework.

The ATR module has a single input and single output. The input value can either be just an event to trigger the ATR calculation for a particular instrument, or can also carry the Close(N-1) value which saves on one lookup (see below). The ATR element outputs the ATR value for this instrument. It also provides a lookup service to allow asynchronous lookup of last calculated ATR values by instrument from other elements.

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Patent Pending 61739845