what is the difference between average true range and average daily range
The average daily range would be the average of the day ranges over the 5 days-in this case the average of $5, $4, $6, $8, and $5 -- $6 dollars.Categories: Definitions | Mature. Skip the spreadsheet.5. The average daily range would be the average of the day ranges over the 5 days-in this case the average of $5, $4, $6, $8, and $5 -- $6 dollars. Categories: Definitions | Mature. Skip the spreadsheet.
Average true range (ATR) is a technical analysis volatility indicator originally developed by J. Welles Wilder, Jr. for commodities. The indicator does not provide an indication of price trend, simply the degree of price volatility.The average true range is an N-day smoothed moving average (SMMA) of the true range values. Wilder recommended a 14-period smoothing.he indicator does not provide an indication of price trend, simply the degree of price volatility. The average true range is an N-day smoothed moving average (SMMA) of the true range values. Wilder recommended a 14-period smoothing.