Average True Range (ATR) is a volatility indicator used to measure market movements and potential price fluctuations over a specified period. It was developed by J. Welles Wilder Jr. and is commonly applied in trading strategies to assess how much an asset, like a cryptocurrency, tends to move.ATR calculates the average of true ranges over a set number of periods. The true range considers the current high and low prices, as well as the previous closing price, providing a comprehensive view of price movement. A higher ATR indicates greater volatility, suggesting more significant price swings, while a lower ATR implies less fluctuation.Traders often use ATR to determine appropriate position sizes and set stop-loss orders. By understanding volatility through ATR, traders can make informed decisions about entry and exit points in their trading strategy. This helps in managing risk effectively, adapting to changing market conditions.