Average True Range Percent (ATRP)
Investment iq offers the ATRP, which is a variant of the ATR. The Average True Range (ATR) and ATRP both quantify volatility, but they are not the same. Since ATRP is expressed as a percentage, you can use it to compare the ATR values of several securities. The ATR is divided by the closing price, and the result is multiplied by 100 to determine the ATRP.A copy
ATRP = (ATR / Close) * 100Using ATRP With .investmentiq
In investmentiq, you can view multiple charts simultaneously, making it simpler to compare the ATRP for different securities. For example, to compare the ATR for four semiconductor stocks, select the four chart layouts in .investment iq and add the four symbols. The example below shows a chart of Advanced Micro Devices (AMD), Intel Corp. (INTC), NVIDIA (NVDA), and Micron Technology (MU). You’ll notice that out of the four stocks, AMD and NVDA are more volatile than INTC and AMD.
Comparing ATRP of four stocks in .investment iq
The Bottom Line
Unlike RSI or MACD, ATR and ATRP are not directional indicators. Rather, they are distinct volatility indicators that show how interested or uninterested a market is in a move. Strong moves in either direction, which can be volatile, are sometimes accompanied with large ranges, also known as True Ranges. This is particularly valid at the start of a transfer. Low-volatility motions might have relatively small ranges. The fervor behind a move or breakout can be confirmed by the ATR and ATRP. Strong buying pressure would be evident and the reversal would be reinforced by a bullish reversal with an elevated ATR. A bearish support break with increased ATR would show strong selling pressure and reinforce the support break. The ATRP can help you compare the ATR of different securities to determine which securities are more volatile than others.
Using ATR with SharpCharts
In scans, the Average True Range indication can be used to exclude unwantedATR appears in the Indicators drop-down menu under the heading “Average True Range.” The default setting of 14 for the number of periods used to smooth the data is found in the “parameters” box to the right of the indicator. Highlight the default value and type a different setting to change the period setting. Wilder frequently employed an 8-period ATR in his work. Additionally, users can place the indicator above, below, or behind the price plot with SharpCharts. ATR ups and downs can be seen by using a moving average. To add a moving average as an indicator overlay, select “advanced options.” For a real-time ATR example, click here.
ATR – SharpCharts
Suggested Scans
Weeding Out High Volatility
Securities with exceptionally high volatility can be filtered out of scans using the Average True Range indicator. This straightforward scan looks for S&P 600 stocks that are rising. High volatility equities are excluded from the results by the final scan clause. It should be noted that the ATR is transformed into a sort of percentage so that the ATRs of various equities may be compared using the same scale.A copy
[group is SP600]
AND [Daily EMA(50,close) > Daily EMA(200,close)]
AND [ATR(250) / SMA(20,Close) * 100 < 4] 
