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Average True Range Formula (Chart Controls)

  • Article

The average true range formula records the maximum values of the following three differences, and calculates the moving average of the resulting data series:

  • Between the previous day's high and low prices.

  • Between the previous day's close price and the current day's high price.

  • Between the previous day's close price and the current day's low price.

The average true range indicator is a good measure of commitment. A high value often indicates market bottom due to panic sell. A low value often indicates market top.

Sample plot of the average true range indicator

Formula Details

Syntax

Chart.DataManipulator.FinancialFormula(
    FinancialFormula.AverageTrueRange,
    "Period",
    "High,Low,Close",
    "ATR")

Parameters

This formula takes one optional parameter.

  • Period
    Period for calculating the moving average of the true range values. The default value is 14.

Input Values

This formula takes one input Y value.

  • High
    Daily high price.
  • Low
    Daily low price.
  • Close
    Daily close price.

Output Value

This formula outputs one Y value.

  • ATR
    Average true range indicator.

Remarks

The Line chart type is a convenient chart type to display the formula output.

Example

The following example takes input from Series1's Y values for the daily high, low, and close prices (Series1:Y,Series1:Y2,Series1:Y4), and outputs the average true range indicator on Series3 (Series3:Y). It uses a period of 15 days to calculate the moving average of the true range values.

Chart1.DataManipulator.FinancialFormula (FinancialFormula.AverageTrueRange, "15", "Series1:Y,Series1:Y2,Series1:Y4", "Series3:Y")

Chart1.DataManipulator.FinancialFormula (FinancialFormula.AverageTrueRange, "15", "Series1:Y,Series1:Y2,Series1:Y4", "Series3:Y");

See Also

Reference

System.Windows.Forms.DataVisualization.Charting
System.Web.UI.DataVisualization.Charting

Concepts

Financial Formulas
Applying Formulas