#firstdealofthenewyearFateema The Average True Range (ATR) is a volatility indicator used in Forex and other markets to measure the average range of price movement over a specific period, typically 14 days. It calculates the average of the True Range (TR), which is the greatest of the following three: 1. Current high minus the current low. 2. Previous close minus the current high. 3. Previous close minus the current low. ATR doesn’t indicate the direction of the market, but instead shows the level of volatility. Higher ATR values suggest higher volatility and larger price swings, while lower ATR values indicate lower volatility and smaller price movements. Traders use ATR to: • Set stop-loss levels: A larger ATR may warrant a wider stop-loss to account for higher volatility. • Assess market conditions: Higher ATR indicates more market movement and risk, while lower ATR suggests a quieter market. ATR is particularly useful in risk management and adapting strategies to changing market conditions. #firstdealofthenewyearFateema