Average True Range ATR XAUUSD Technical Analysis & ATR XAUUSD Signals

Developed by J. Welles Wilder

This xauusd indicator is a measure of volatility - it measures the range of gold price movement for a particular gold price period. The ATR is a directionless indicator & it does not determine the direction of the XAUUSD trend.

High ATR values

High Average True Range indicator values indicated market bottoms after a sell off.

Low ATR values

Low Average True Range values showed extended periods of sideways gold price movement- XAUUSD Price Range, such as those found at market tops and consolidation periods. Low ATR values are typical for the periods of sideways movement of long duration which happen at the top of the xauusd market and during consolidation.

Calculation

This xauusd technical indicator is calculated using the following:

• Difference between the current high & the current low

• Difference between the previous closing gold price & the current high

• Difference between the previous closing gold price & the current low

The final Average is calculated by adding these values and calculating the average.

XAUUSD Technical Analysis and How to Generate Trading Signals

Average True Range technical indicator can be analyzed using the same principles as other volatility technical indicators.

Possible xauusd trend change signal - The higher the value of indicator, the higher the probability of a xauusd trend change;

Measure of xauusd trend momentum - The lower the indicator’s value, the weaker the xauusd trend movement.

Technical Analysis in XAUUSD Trading