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cover of episode Ep. 323 Why Average True Range Is A Bigger Deal Than Ever Before, And How To Use It

Ep. 323 Why Average True Range Is A Bigger Deal Than Ever Before, And How To Use It

2025/6/4
logo of podcast Investing With IBD

Investing With IBD
AI Chapters Transcript
Chapters
This chapter introduces the Average True Range (ATR) indicator, explaining its calculation and significance in assessing stock volatility. It emphasizes the importance of using percentage-based ATR rather than point values, especially in today's market with varying stock prices.
  • ATR measures daily stock movement, including gaps.
  • Percentage-based ATR is crucial for comparing stocks with different price levels.
  • Gradual implementation of ATR is recommended for better understanding.

Shownotes Transcript

Do you like trading high-octane stocks? IBD’s Mike Webster shares whether or not it’s worth investing when the risk is high, and how to help determine a stock’s risk through assessing its average true range.

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