How it is calculated
The catalogue's ATR (Wilder's smoothing of the true range, seeded with the mean of the first true ranges) divided by the bar's close and multiplied by 100. A close of 0 gives 0, as TA-Lib NATR returns for it. The first value comes on the same bar as the ATR's.
Reference: TA-Lib NATR
How to read it
A NATR of 1.5 means the average bar spans about one and a half percent of the price. Higher values mean a more volatile market. Like ATR it shows no direction, only how much price moves.
In a strategy
Filter markets or phases by volatility, for example only trade while ctx.ind("natr", length=14) is between 0.5 and 3, or compare the volatility of the symbols in a portfolio.
Inputs
| Input | Type | Default | Range or choices |
|---|---|---|---|
Lengthlength | Whole number | 14 | min 1, max 5000 |
What it draws
| Line | Drawn as |
|---|---|
| NATR | Line |
Used in
No strategy template reads it yet.