ATR stands for an average true range that is a technical indicator. Traders can use it for a market analysis of the price of the assets, indicating a considerable price move of an asset in a period of time. In simple terms, it provides traders with an idea of how volatile the asset is for trading.
While trading in the financial markets, traders can employ ATR to predict how the price of the asset will move in the future. In addition, traders can even place the stop-loss order based on the ATR analysis. Thus, achieving the profits from the trade and minimizing the loss.