ATR (Average True Range)

What it measures

The typical size of a daily price bar, accounting for gaps between bars (not just that day's own high-low range) - a volatility measure in price units, not percentage.

Formula

True Range = max(High-Low, |High-Prior Close|, |Low-Prior Close|); ATR = Wilder-smoothed average of True Range over 14 days.

Normal range

Scales with BTC's price level and current volatility regime - compare it to itself over time, not to a fixed number.

How it fails

ATR describes past range, not future range - a calm ATR reading can be followed immediately by a large move; it's an input to a stop distance, not a prediction of the next bar's size.

Related metrics

Realized Volatility, Price

Bull read

Not applicable - this metric has no bull/bear framing.

Bear read

Not applicable - this metric has no bull/bear framing.