Average True Range (ATR)

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In this article, we will be discussing the ATR (Average True Range) technical indicator that is used to analyze stock performance.  

I will provide

  • A brief introduction to the theory or concept behind ATR indicator
  • A demo of the template and how you can use it to calculate ATR for any stock you are interested in.
Average True Range (ATR) Technical Indicator in Excel

Concept / Theory

The Average True Range (ATR) is used to measure volatility. ATR is not used to indicate the direction of price.

ATR Calculation

ATR = Average of True Range

True range = max [ (high – low), ABS(high – previous close), ABS (low – previous close)]

How ATR (Average True Range) indicator is calculated

ATR Excel Template

The template will help you create the ATR indicator automatically for any stock.

Average-True-Range-ATR-Technical-Indicator
Average-True-Range-ATR-Technical-Indicator

The blue line indicates the Closing price and the Orange line the ATR

Download

Video Demo

Requirements:

To pull live Stock data from the services you would need either Microsoft 365 Subscription Plans for PC and Web or Excel for the web

How to Use:

Type in a stock sticker symbol on the top left.

ATR Technical Indicator Input stock symbol

If Excel does not recognize your stock symbol, it will pop up this data selector box.

Select the Stock

You can select the stock you are interested in.

Period

The template can pull up to 5 years of price history by default. You can choose how much history to display on the chart easily using the slicer buttons.

Period-for-the-Stock-price-history
Period-for-the-Stock-price-history

The options are 5 Days, Month Till Date, 1 Month, 3 Months, 6 Months, Year Till Date, 1 Year, 5 Years.

Interval

The template allows price history at 3 different intervals.

Interval-of-Stock-price-history
Interval-of-Stock-price-history

Daily/Weekly/Monthly are the options.

Input Parameters

ATR Input parameters
  • Source: Closing price is the one that is used for calculations typically. However, you can choose from Open, High, Low, Close or Volume.
  • SMA Length: You can type in a length in periods. The commonly used is 14.

The chart will update automatically based on all the above inputs.

Timezone

On the top right you can see the maximum of the last trade time of these currencies.

The default time that Microsoft provides is UTC.  The offset is set to -7 hrs, to convert to pacific time zone.

You can modify this if you need the time in a different time zone.

Visit https://savvytime.com/converter/utc to view offset.

How to refresh data?

How to refresh Stocks data
How to refresh Stocks data

Resources

ATR – TradingView

For more Excel Templates for Stock Market, visit indzara.com/stock-market-templates

Feedback

Please share your feedback on this template in the Comments below. If you find this useful, please share with your friends who may benefit from this content.

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