Forex encyclopedia

Average True Range (ATR) is an indicator of technical analysis measuring volatility of financial asset. Originally, this indicator was purposed for trading with commodity futures. ATR indicator is not dedicated to forecasting direction of asset's movement and moreover does not have a goal to make any kind of forecasting. Average True Range is only meant to describe volatility (present variability) of instrument (asset) and is developed as a supplementary indicator of technical analysis, which must be combined with other indicators. In other words, Average True Range assists in analysis of one or another asset.

Tirone levels represent a sequence of several horizontal levels decreasing in succession. This method is used for determining support and resistance levels within trading range at definite moment of time. Tirone levels were elaborated by John Tirone. In practice, TL are applied to improve visual reception of price movement. Also through these method of technical analysis one can generate signals for opening positions. For example, if price reaches TL from upward – it is an alert for purchase and a signal for sale is received, when prices approaches from bottom.