How it is calculated

The largest of three distances: high minus low, the high's distance from the previous close and the low's distance from the previous close. The first bar has no previous close and so no value, as in TA-Lib TRANGE (Wilder 1978). There is no length and no smoothing.

Reference: TA-Lib TRANGE (Wilder 1978)

How to read it

A single tall bar stands out at once, which makes the line jumpy. Spikes mark news, opening gaps or panic. On its own it is noisy; most strategies average it, which is what ATR does.

In a strategy

Spot an unusually wide bar, for example one whose ctx.ind("tr") is more than twice the ATR, as a breakout or exhaustion signal, or use it as the input of a custom average.

Inputs

It takes no inputs.

What it draws

Line	Drawn as
TR	Line

Used in

No strategy template reads it yet.