what is a good average true range 
a good atr depends on the asset if it generally has an atr of close to 1 18 it is performing in a way that can be interpreted as normal if the same asset suddenly has an atr of more than 1 18 it might indicate that further investigation is required likewise if it has a much lower atr you should determine why it is happening before taking action the bottom linethe average true range is an indicator of the price volatility of an asset it is best used to determine how much an investment s price has been moving in the period being evaluated rather than an indication of a trend calculating an investment s atr is relatively straightforward only requiring you to use price data for the period you re investigating 