Hi,
The concept of Average True Range was developed by J. Welles Wilder Jr and introduced in his book, New Concepts in Technical Trading Systems (1978), the Average True Range (ATR) indicator measures the volatility of a stock or index.
I am uploading the Average True Range (ATR) indicator calculator.You can download it from here.
It's fairly simple to use, all you need to do is update the data in "Grey Cells" Just be careful when you copy the high, low,close data for the day,quite often due to "freak quotes" you get incorrect opening values (happens mostly with illiquid stocks).So I would say ignore a few initial ticks, if that is cumbersome ignore the first minute data.
True Range is defined as the greatest of the following:
1)Today's High less Today's Low (D1)
2)Today's High less Yesterday's Close (D2)
3)Yesterday's Close less Today's Low (D3)
The calculator will be of help if you have a trading system based on a range.Using Average True Range (ATR) indicator or True Range instead of just high and low for the day gives a better feel of the markets.This is specially useful to calculate volatility in a stock or a commodity making limit moves
A few days back I had posted Narrow Range Calculator,this calculator can be combined with NR7 calculator to give a better overall system.I will post a new NR7 calculator based on true range shortly
Cheers
Related File
Download - Average True Range (ATR) Indicator Calculator In Microsoft Excel Modifiable (Research Version)
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The concept of Average True Range was developed by J. Welles Wilder Jr and introduced in his book, New Concepts in Technical Trading Systems (1978), the Average True Range (ATR) indicator measures the volatility of a stock or index.
I am uploading the Average True Range (ATR) indicator calculator.You can download it from here.
It's fairly simple to use, all you need to do is update the data in "Grey Cells" Just be careful when you copy the high, low,close data for the day,quite often due to "freak quotes" you get incorrect opening values (happens mostly with illiquid stocks).So I would say ignore a few initial ticks, if that is cumbersome ignore the first minute data.
True Range is defined as the greatest of the following:
1)Today's High less Today's Low (D1)
2)Today's High less Yesterday's Close (D2)
3)Yesterday's Close less Today's Low (D3)
The calculator will be of help if you have a trading system based on a range.Using Average True Range (ATR) indicator or True Range instead of just high and low for the day gives a better feel of the markets.This is specially useful to calculate volatility in a stock or a commodity making limit moves
A few days back I had posted Narrow Range Calculator,this calculator can be combined with NR7 calculator to give a better overall system.I will post a new NR7 calculator based on true range shortly
Cheers
Related File
Download - Average True Range (ATR) Indicator Calculator In Microsoft Excel Modifiable (Research Version)
Other Posts of Interest
Free Online Forex Futures Trading Strategy
Free Gold And Crude Oil Futures Tend Update
Sir,
ReplyDeleteThanks In the narrow range calculator what is N4,N7 and N14 and how to know that this is low volatility.
Bala
Hi Bala Sir,
ReplyDeleteNR4 and NR7 are quite popular breakout trading system.Assumption in this strategy is that if a stock is making a narrowest range today with respect to previous seven days (including today), probability is high that it will experience a rise in volatility in tomorrow's trading.You can use it as a scanner to use it find a stock to trade in the next trading day.
Disadvantage being it's a breakout system,so you enter trade at point of maximum risk but as we enter at NR7 day our stops are "relatively" close to breakout point.
You can ignore NR14,I just added it for my research purpose,being a close follower of Welles Wilder I added it,as 14 was his favorite parameter
Good luck...cheers
Hello,
ReplyDeleteThanks for the many calculators. I would really appreciate if you can help me with any material on ATR Analysis for EOD. Thanks in Advance.
Regards, Jai.
jai3222 (at) ymail (dot) com
Hi Jai
ReplyDeleteyou can find a detailed explanation about atr here
http://stockcharts.com/help/doku.php?id=chart_school:technical_indicators:average_true_range_a
Hope it helps
With Respect to ATR
ReplyDelete"The higher the value of the indicator, the higher the probability of a trend change; the lower the indicator’s value, the weaker the trend’s movement is"
Hi Anuj,
ReplyDeletewhen I click the link to download it goes to some MP3 file. I am not able to download any Excel file. What am I doing wrong please?!
Regards,
Hi Vinod,
ReplyDeleteIf you click "You can download it from here" link above it will take you to 4shared.com Then click "Download Now" Tab, It will work. More than 470 downloads hasn't been a problem before, please try it again. It will work :)
Hi Anuj,
ReplyDeleteI also could not download the excel file. After clicking the "Download Now", it shows a link to click. After clicking that link, it says "The file link that you requested is not valid." can you pls check? Thnx in advance.
@LKAH
ReplyDeleteHi, yes that link seems to be broken I wonder why..
Download from alternative link given under "related file" "Download - Average True Range (ATR) Indicator Calculator In Microsoft Excel Modifiable (Research Version)" or the direct link below
http://www.4shared.com/document/Rfne-XJB/AT_R.html
@LKAH
ReplyDeleteChanged the link, now both links lead to same file and it can be downloaded. Thanks for pointing out the dead link :)
Hi Anuj,
ReplyDeleteYes, now its working :)
Thnx a lot for your effort.
Hey Anuj,
ReplyDeleteThanks for your effort man but the excel sheet seems to be wrongly calculating the ATR value (or may be i am missing something).Let me know if i can upload the correct one :)
@vishumahajan
ReplyDeleteSure...you can upload the file and provide the link below :)
I have sent you a mail on ur gmail id...plz check and let me know if the calculation is fine.
ReplyDelete@vishumahajan
ReplyDeleteHi, good morning.
You can follow which ever method you feel comfortable with, it's the same thing.
As per stockcharts method, you need take thirteen day's average, in your excel file you have taken 14 day's average.I have corrected and send back the file with all the three methods( original method, stockcharts method and your method) "My method" and "stockchart method" is correct, please see the calculation part that you missed.
Above calculation is as per Welles Wilder method. Some people modify it by using EMA and other stuff.I should say keep it simple :)
There's an ATR spreadsheet for Excel here
ReplyDelete