ATR (Average True Range)

ATR (Average True Range) is a number that tells you how much a stock's price typically bounces around day-to-day. It measures volatility—the size of price swings—by looking at the largest move (up or down) over the last 14 days on average. You'll see ATR mentioned by traders watching charts, because it helps them set realistic expectations for how far a stock might move and where to place stop-losses (orders that automatically sell if the price drops too far). For example, if TechCorp has an ATR of $2, you'd expect it to move roughly $2 per day; if it has an ATR of $0.50, it's a calmer stock. Higher ATR means choppier trading; lower ATR means steadier movement.