Applying Average True Range Indicator in a Volatility Trend Situation
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Average true range indicator is an indicator that measures volatility which was developed by J. Welles Wilder. It is important to remember that ATR does not provide an indication of price direction, just volatility.
When looking at the chart, it is highly recommended that traders understand if the market is moving or not. With the help of the average true range indicator, we are able to spot the volatility happening on the currency pair leading to a more accurate course of action later on.