Average True Range Strategy for Binary Options
By Binary Diaries

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The Average True Range or the ATR, is a measure of volatility introduced by Welles Wilder in his book: “New Concepts in Technical Trading Systems”

The True Range Indicator is greatest of the following:

Current high less the current low.
The absolute value of the current high less the previous close.
The absolute value of the current low less the previous close.

The Average true range is a moving average (generally 14-das) of the True Ranges. Weles Wilder originally developed the ATR for commodities but it can also be used in binary options trading, as a measure of volatility in currencies/forex. Thus as a binary options strategy, the ATR could be used to measure how volatile a currency pair or a trading asset will be volatile in a given period of time.

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