Average True Range ( ATR indicator )

The ATR indicator supplied with NinjaTrader cannot be used with an input series other than price. We have recoded it so that you may apply it to other indicators. To do so, simply select any of the other NinjaTrader indicators as input series.

The Average True Range (ATR)

Indicator Description

The Average True Range indicator ( ATR indicator ) was introduced by Welles Wilder in his book, “New Concepts in Technical Trading Systems.” The ATR indicator is a measure of volatility. Specifically, it tells you which is the greatest of the current high less the current low, the absolute value of the current high less the previous close and the absolute value of the current low less the previous close.

The ATR responds to volatility, highlighting possible trend changes. Accordingly, the Average True Range indicator determines the current volatility, and can also be used to determine the appropriate risk level for a specific trade. This application was discussed in detail in our Indicator Spotlight on the ATR Trailing Stop, available from the library here. Another application of the ATR indicator as was reviewed with the Wilder Volatility Stop Spotlight. Finally, you may also want to review our Spotlight on Relative Ranges.

Other Library Indicators

Several other standard indicators currently supplied with NinjaTrader that cannot be used with an input series other than price. We have therefore recoded them, available from the nested indicators category. They include the ADX, ADXR, CCI, Directional Movement, Directional Movement Index, Fast Stochastics, Parabolic SAR and the Standard Stochastics. 

The ATR indicator is available for NinjaTrader 8.

Average True Range ( ATR indicator )

TEST Disclaimer

Futures, stocks, and spot currency trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

 

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