|True range is the greatest distance between either:|
A) Today's high and today's low, or
B) Today's high and yesterday's close, or
C) Today's low and yesterday's close.
Supposing you wanted an ATR based on 10
days of data, you would first find the true range for 10 days, add the results and divide by 10. This would
be your initial ATR.
|ATR= (9 Previous ATR + Today's True Range)/10|
|Company:||Technical Analysis, Inc.|
|Address:||4757 California Ave SW|
|Seattle, WA 98116|
|Phone # for sales:||206 938 0570|
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