How to use ATR (Average True Range) ? The Average True Range (Wilder) measures market volatility. High ATR values may signal market bottoms, and low ATR values may signal neutral markets. During more volatile markets ATR moves up, During less volatile market ATR moves down. When price bars are short, means there was little ground covered from high to low during the day If price bars begin to grow and become larger, representing a larger true range, ATR indicator line will rise. ATR indicator doesn't show a trend or trend duration.