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ATR Gold Trading Analysis and ATR Gold Trading Signals

Developed by J. Welles Wilder

This indicator is a measure of volatility - it measures the range of xauusd price movement for a particular xauusd price period. The ATR is a directionless indicator and it does not determine the direction of the Gold trend.

Average True Range (ATR) XAUUSD Indicator

High ATR values

High Average True Range values indicated market bottoms after a selloff.

Low ATR values

Low Average True Range values showed extended periods of sideways xauusd price movement- Gold Price Range, such as those found at market tops and consolidation periods. Low ATR values are typical for the periods of sideways movement of long duration which happen at the top of the xauusd market and during consolidation.


This indicator is calculated using the following:

  • Difference between the current high and the current low

  • Difference between the previous closing xauusd price and the current high

  • Difference between the previous closing xauusd price and the current low

The final Average is calculated by adding these values and calculating the average.

XAUUSD Trading Analysis and Generating XAUUSD Trading Signals

Average True Range can be interpreted using the same principles as other volatility indicators.

Possible gold trend change signal - The higher the value of the indicator, the higher the probability of a gold trend change;

Measure of gold trend momentum - The lower the indicator’s value, the weaker the gold trend movement.

Average True Range (ATR)- Sell and Buy XAUUSD Trading Signals

Technical Analysis


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