OPEN-SOURCE SCRIPT

Average True Range % of Price

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This script easily shows in an indicator window the Average True Range % of Price, which helps people understand the volatility of an asset in % terms defined by custom MA periods for custom ATR periods.

The MA Period gives the average price.

The ATR Period gives the average range.

The Average Range / Average Price = Average Range % of Price.

Understanding the volatility of an asset can help people manage risk e.g. if an asset has a low entry cost, but very high volatility it may be more risky than another asset with a high entry cost, but much lower volatility.

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