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ATR Creator: J. Welles Wilder
Concept: Definedge
There are two lines plotted below the chart in the ATR PERCENTILE indicator.
The ATR percentile indicator is used to determine volatility of a stock over a period.
The red line represents the average percentile for the last 240 periods. The green line indicates the current ATR percentile for the last 14 periods.
A scrip with a green line (current ATR percentile) above the red line (average percentile) is considered to be volatile, and vice versa.
The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.
This indicator is available in the System Builder on RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.
The indicator is applicable to all types of charting. It is calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin-Ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.