Average True Range (ATR)
Definition
A volatility indicator that measures the average range between high and low prices over a period, accounting for gaps.
Example
If ATR(14) is $2.50, the asset typically moves $2.50 per day. This can be used to set appropriate stop-loss levels.
How Gilito AI Uses It
ATR is used in regime detection (ATR ratio helps classify volatile vs. calm markets) and for setting dynamic stop-loss levels in strategies.