The Average True Range Percent / ATRP Indicator is a variation of Welles Wilder Average True Range (ATR), which featured in his 1978 book, “New Concepts in Technical Trading Systems.” It is important to remember that the indicator does not try and predict the direction of price, instead it only tries to define the current volatility in the market. Also, it tries to define current volatility in such a way that it is comparable across all markets, which is the main difference from the traditional ATR. To calculate Average True Range Percent, you perform the following (where X is a user input): ATR(X) / Close * 100.
The NinjaTrader indicator Average True Range Percent (ATRP) is built on our Oscillator Framework, which allows users to easily run the indicator on multiple time frames (MTF), including custom bar types. To preview “The Framework” that makes our indicators a necessary part of every traders arsenal, please review the following video: