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Description

This study calculates and displays a Moving Average of the True Range.

Let the Input Length be denoted as \(n\), and let \(TR\) be a random variable denoting the True Range. Then we denote the Average True Range at Index \(t\) for the given Length as \(ATR_t(n)\), and we calculate it in terms of a Simple Moving Average for \(t \geq n - 1\) as follows.

Note: Depending on the setting of the Input Moving Average Type, the Simple Moving Average in the above formula could be replaced with an Exponential Moving Average, a Linear Regression Moving Average, a Weighted Moving Average, a Wilders Moving Average, a Simple Moving Average - Skip Zeros, or a Smoothed Moving Average.

This study only functions properly on a Historical Daily chart. A Historical Daily chart can be opened with File >> Find Symbol >> [select symbol] >> Open Historical Chart.

Once you add this study to a Historical Daily chart, the study can be overlaid to an Intraday chart by using the Study/Price Overlay study.