ATR Calculator
The Average True Range (ATR) is a volatility indicator developed by J. Welles Wilder. It measures the average price range of an asset over a 14-period lookback. Traders use ATR to set volatility-adjusted stop losses, determine position sizes, and gauge whether a breakout has sufficient momentum. A higher ATR means more volatile, wider-ranging price action.
Enter 14 candles of High, Low, and Close data (row 1 = oldest). The first row is used as the previous close for TR calculation.
| # | High | Low | Close |
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| 14 |
14-Period ATR
3.8231
True Ranges Calculated
13
Last True Range
3.8000
How to use this calculator
- 1
Enter 14 candles of price data
Fill in the High, Low, and Close for each candle, starting with the oldest (row 1) to the most recent (row 14).
- 2
The True Range is calculated automatically
Each TR = max(High−Low, |High−Prev Close|, |Low−Prev Close|). Row 1 is used as the previous close for row 2's TR.
- 3
Read the ATR
The 14-period ATR is the average of all True Ranges. Use this for stop placement (e.g., 1.5× ATR below entry).
Formula
True Range = max(High − Low, |High − Prev Close|, |Low − Prev Close|)
ATR(14) = Average of 14 True Range values
Common stop loss: Entry − (1.5 × ATR) for long tradesTrue Range is the largest of three values: the current high-to-low range, the distance from the previous close to the current high, and the distance from the previous close to the current low. This accounts for overnight gaps. ATR is simply the 14-period simple moving average of True Range values. Wilder originally used an exponential smoothing method, but the simple average is commonly used and shown here.
Worked Example
Example True Range calculation (1 period): Previous close: $151.00 Current high: $153.80 Current low: $149.60 High − Low = $4.20 |High − Prev Close| = |$153.80 − $151.00| = $2.80 |Low − Prev Close| = |$149.60 − $151.00| = $1.40 True Range = max($4.20, $2.80, $1.40) = $4.20 After calculating 14 such values and averaging them, you get the ATR. If ATR = $3.50 and you want a 1.5× ATR stop: stop = entry − $5.25
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