After reading Tech's comments on another thread I am trying to come to terms with Average True Range and how to use it as an indicator.
Can someone please explain what it represents and how to read it.
For example I have just looked up BMX with Market Analyst and have applied the ATR graph. It comes up with "10 Period Average True Range". The ATR falls from 0.025 in Feb 2006 to 0.009 recently. What is that telling me? What does the figure 0.009 represent? What is the 10 period?
If I don't understand how things work I find it very difficult to use them with any confidence!!
Thanks for any assistance