ATR Metals Analysis & ATR Metals Trade Signals

Created by J. Welles Wilder

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

High ATR values

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

Low ATR values

Low Average True Range values showed extended periods of sideways metals price movement- Metals 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 metal market and during consolidation.

Calculation

This metals technical indicator is calculated using the following:

• Difference between the current high & the current low

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

• Difference between the previous closing metals price & the current low

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

Metal Analysis & How to Generate Trading Signals

Average True Range technical indicator can be analyzed using the same principles as other volatility technical indicators.

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

Measure of metals trend momentum - The lower the indicator's value, the weaker the metals trend movement.

Technical Analysis in Metal Trading