How to calculate the average true range for cryptocurrencies?

1 answers

• Aarif MahdiDec 17, 2024 · a year ago
  Calculating the average true range (ATR) for cryptocurrencies is a straightforward process that can help traders assess the volatility of a digital asset. To calculate the ATR, you need to gather the high, low, and close prices for a specific period, such as 14 days. Then, you calculate the true range for each day, which is the highest value among the following: the difference between the high and low price, the absolute value of the difference between the high price and the previous day's close, and the absolute value of the difference between the low price and the previous day's close. After calculating the true range for each day, you can find the average by summing up the true ranges and dividing by the number of periods. The ATR provides traders with valuable information about the potential price movements of a cryptocurrency, allowing them to make informed trading decisions.
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