Normalised Average True Range
Type
Other indicator
Short introduction
The normalised average true range ("NATR") is based on the Average True Range.
Statement
The normalised average true range measures volatility. Due to the normalisation, the NATR is better suited for a comparison across different price levels than the average true range.
Formula/calculation
NATR = 100 × ATRn ÷ C
where:
C = Close
ATRn = Average true range over n periods
Interpretation
The use of NATR is always useful to support decisions to select securities on the basis of their volatility over different periods of time.
Default setting
- Period: 14 periods
Example: Normalised Average True Range
