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ATRP (Average True Range Percent)

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ATRP compares the average true range in percentage terms between two periods. A healthy correction occurs with short-term volatility contracting vs longer-term volatility. It also helps spot low-risk entries as volatility falls.
I also included the historical average true range in percentage terms so an investor can quickly visualize what a likely daily range will be.

In my experience, it is vital to apply this analysis to stocks trending above their 50 and 200-day moving averages as stocks in downtrends can keep falling for extended periods of time with dwindling volatility.

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