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ATR — Average True Range Trading Series

The ATR trading series represents the Average True Range (ATR) indicator, which measures market volatility by decomposing the entire range of an asset price for a given period.

It is built upon the ATR indicator implementation from the indicators module.

Parameters

ATR(
    ticker: str,
    length: int = 14,
    smoothing_type: SmoothingType = SmoothingType.RMA
)

  • ticker (str): The symbol of the asset (e.g., "AAPL").

  • length (int): The number of periods over which to calculate the ATR. Default is 14, a common setting in technical analysis.

  • smoothing_type (SmoothingType): The type of smoothing applied to the true range. Default is SmoothingType.RMA. Supported smoothing types are linked here.

Description

  • The ATR is a volatility indicator showing how much an asset moves, on average, during a given time frame.
  • A rising ATR indicates increased volatility; a falling ATR suggests decreased volatility.
  • ATR is often used to position size adjustments, stop loss calculations, or as a volatility filter in trading strategies.

Example Usage

ATR(
    ticker="AAPL",
    length=14,
    smoothing_type=SmoothingType.RMA
)

This creates an ATR Trading Series for AAPL using a 14-period length and RMA smoothing by default.