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ATR Formula

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genzmann

Posted : Thursday, July 15, 2010 7:23:05 PM

Registered User
Joined: 10/19/2004
Posts: 5

Can you give me the formula for the average true range?

Bruce_L

Posted : Friday, July 16, 2010 9:03:23 AM

Worden Trainer

Joined: 10/7/2004
Posts: 65,138

One way to write a formula for True Range using TeleChart's Personal Criteria Formula Language would be:

(H -L + ABS(H - C1) + ABS(C1 - L)) / 2

This means you could create a 20-Period Average True Range (Wilder's Smoothed) as a Custom Indicator as follows:

Plotting Custom Indicators with Examples

Select Chart Template | Add Indicator | Indicator.
- Visible: Checked
- Center Zero Line: Checked
- Plot using price scale: Unchecked
- Smoothing Average: 39 (twice the ATR-Period minus one)
- Average Type: Exponential
- Indicator Formula: (H - L + ABS(H - C1) + ABS(L - C1)) / 2

You can adjust the Average True Range Period by changing the Smoothing Average in the Custom Indicator. For example, to plot a 14-Period ATR, just change the Smoothing Average to 27 (which equals (14 * 2) -1).

Average True Range formulas for a variety of Periods and Moving Average types are provided in the following topics:

Please provide a description and PCF for calculating an ATR value to be used as a stop loss value
Sir Old Viking Trader and PCFs
20-Day Average True Range
ATR for PCF
5 day Average True Range

-Bruce
Personal Criteria Formulas
TC2000 Support Articles

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