| The Normalized Average True Range (ATR) indicator is a technical analysis tool that measures market volatility. It is calculated by dividing the ATR by the stock price to normalize the indicator across different securities. The Normalized ATR can be used to compare volatility levels between different stocks, as it measures the percentage movement of an asset's price rather than the absolute movement. When the Normalized ATR value is high, it indicates that the stock's price is experiencing significant fluctuations, while low values suggest the opposite. The Normalized ATR can be used to identify potential entry and exit points in the market, as well as to set stop-loss levels and determine the overall risk of a trade. |
