Average True Range (ATR)

ATR measures market volatility. It tells you how much the price moves, on average, over a set number of days (typically 14). A higher ATR means more volatility, and a lower ATR means price is moving steadily.

Use ATR to set stop-loss levels. For volatile stocks, you might want to place a wider stop-loss to avoid getting stopped out early. For calmer stocks, a tighter stop might work better. ATR can also help gauge whether the market is heating up or calming down.

If a stock has an ATR of 5 rupees and is currently priced at 200, you can use that 5 rupee figure to set a stop-loss accordingly or understand that the stock tends to move around 5 rupees a day.

Parameter	Description	Default Value
Window	Number of periods for the indicator	14