What is the ATR?

The Average True Range measures the average volatility of an asset over N periods. It does not indicate direction, only how much the price moves. High ATR = high volatility; low ATR = low volatility.

Using it in binary options

Volatility filter: only trade when the ATR is above its average. Low volatility = weak signals.

Expiry: use the ATR to set an appropriate expiry timeframe.

Avoid traps: a very high ATR can signal erratic moves. Wait for it to stabilise.

💡 Tip

The ATR works better as a filter than as a signal generator. Use it alongside the RSI or MACD to decide when to trade and when to wait.