intermediatePremiumTechnical Analysis

ATR

ATR — the Average True Range — measures volatility as a single number: the average size of a market's recent price range, including gaps. This article explains 'true range' and why it captures more than the high-minus-low, how ATR is averaged over a lookback, what a rising or falling ATR tells you, and how ATR is used to gauge what counts as a 'normal move' and to scale stops and position size to volatility. It stresses that ATR measures size, never direction.

11 min readPublished 19 June 2026

Before this, read

Moving Averages Bollinger Bands

This is a Premium lesson

Unlock the full knowledge base, learning paths, quizzes, progress tracking and the AI tutor with an Ironclad Premium membership.

Create a free account Sign in

Next lesson

Continue learning

Ichimoku Cloud

Related topics

intermediateTechnical AnalysisPremium

Reversals

A reversal is a genuine change in a market's prevailing direction — an uptrend becoming a downtrend, or vice versa. This article defines a trend structurally (higher highs and higher lows, or lower highs and lower lows), shows how a reversal is the breaking of that sequence, and tackles the hardest problem in all of price action: telling a real reversal from an ordinary pullback. It closes on why reversals are only ever confirmed in hindsight, and why 'catching' them is where so many go wrong.

Ironclad Research provides educational content only. Nothing on this platform is financial advice, a recommendation, or an offer to buy or sell any security. Always do your own research and consider professional advice before making financial decisions.