What this helps answer
Is ATR rising for ETH?
Indicators
Average True Range: ATR
ATR, or Average True Range, measures how much price has been moving over recent candles.
Why it matters
This concept is part of live backend analysis and is used to explain market context, not to produce standalone buy or sell instructions.
Related concepts
Bollinger Bands, Volatility, Market State
How it is used in NotifyTrader
NotifyTrader calculates ATR 14 and converts it into an ATR percentage proxy inside the market state engine. ATR helps classify Expansion and Elevated risk.
What ATR measures
ATR looks at true range, which includes current high-low range and gaps relative to the prior close.
Higher ATR means larger price movement. Lower ATR means quieter price movement.
Why ATR is useful in crypto
Crypto markets can shift quickly between quiet and volatile periods. ATR helps describe whether risk is changing even before a trend is clear.
ATR does not tell direction. It describes movement size.
How NotifyTrader uses ATR
The market state engine uses ATR percentage to help classify Expansion, Compression, Elevated risk, and ExhaustionRisk.
Assistant answers can use ATR to explain whether a move is happening in a calm or volatile environment.
Questions to ask the assistant
- Is ATR rising for ETH?
- Is volatility elevated across my watchlist?
- Does ATR support the current Expansion state?
FAQ
Does high ATR mean bullish?
No. ATR measures movement size, not direction.
Why use ATR percentage?
ATR percentage makes volatility more comparable across assets with different prices.