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What is the method for calculating the average true range (ATR) specifically for digital currencies?

avatarGustavo CervantesDec 26, 2021 · 3 years ago3 answers

Can you explain the specific method for calculating the average true range (ATR) for digital currencies? I would like to understand how this indicator is calculated and how it can be applied to the digital currency market.

What is the method for calculating the average true range (ATR) specifically for digital currencies?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    The average true range (ATR) for digital currencies is calculated by taking the average of the true range values over a specified period. The true range is the greatest of the following: the difference between the current high and the current low, the difference between the current high and the previous close, or the difference between the current low and the previous close. This calculation is repeated for each period, and the average of these values is then calculated to determine the ATR. The ATR can be used as a volatility indicator, providing insights into the price range and potential price movements of digital currencies.
  • avatarDec 26, 2021 · 3 years ago
    Calculating the average true range (ATR) for digital currencies involves determining the true range for each period, which is the difference between the highest and lowest prices within that period. The true range is then averaged over a specified number of periods to calculate the ATR. This indicator can be useful for assessing the volatility and potential price movements of digital currencies, allowing traders to make more informed decisions.
  • avatarDec 26, 2021 · 3 years ago
    When it comes to calculating the average true range (ATR) specifically for digital currencies, the process is similar to calculating it for other financial instruments. The ATR is calculated by finding the true range for each period, which is the difference between the highest and lowest prices within that period. These true range values are then averaged over a specified number of periods to determine the ATR. This indicator can be valuable for digital currency traders, as it provides insights into the volatility and potential price movements of these assets.