Indicators
ATR and Volatility: How Much Does a Price Usually Move?
MarketLens Editorial · 12 Oct 2026
Average True Range (ATR) measures the typical size of a session's movement, including overnight gaps. True Range is the largest of: High − Low, |High − previous Close|, |Low − previous Close|. MarketLens averages it over 14 sessions.
Historical volatility is the standard deviation of daily log returns, annualised by √252 for stocks (√365 for crypto).
Why it matters
Volatility tells you how wide a "normal" move is. A 2% projected move means little on an instrument that routinely moves 4% a day.
In MarketLens
ATR as a percentage of price is shown on every forecast, and the significance threshold for a Possible Buy or Sell scenario scales with volatility so that ordinary noise is not mistaken for a signal.
Risk notice: Forecasts are uncertain statistical estimates. Scenarios are algorithmic outputs, not investment advice. EatoRush MarketLens is not SEBI-registered. See the Risk Disclaimer.
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