ATR (Average True Range)

ATR measures how much a stock's price typically moves up or down each day. It's calculated by averaging the stock's price swings over the last 14 days (though traders can adjust this timeframe). Think of it as the stock's "volatility temperature"—high ATR means big daily moves, low ATR means smaller swings. You'll see ATR used by traders setting stop-losses (the price point where you'd sell to limit losses) and deciding position size. For example, if TechCorp has an ATR of $2, you'd expect typical daily moves around that range; if it spikes to $5, something unusual is happening. It's a simple way to gauge whether a stock is calm or chaotic.