Average True Range Bitcoin Trading Analysis and ATR Bitcoin Trading Signals

Developed by J. Welles Wilder

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

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 btcusd price movement- Bitcoin 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 btcusd trading market and during consolidation.

Calculation

This btcusd indicator is calculated using the following:

• Difference between the current high and the current low

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

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

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

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

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

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

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

Technical Analysis