DealBook® 360: Technical Indicators

The following indicators are free with a standard GFT trading account.Average True Range
The Average True Range is a moving average of the True Range, which is the difference between the True Range High and the True Range Low.
The current True Range High is the current high or the previous close, whichever is greater. The current True Range Low is the current low or previous close, whichever is lower. These values take into account price changes during off-hours trading.
The Average True Range at the beginning of the data series is not defined until there are enough values to fill the given period.
The Average True Range measures the volatility of a given forex trading market. High values indicate that currency trading prices are changing a large amount during the day. Low values indicate that prices are staying relatively constant. Both trending and level prices can have high or low volatility.
High volatility levels in forex can sometimes be used to time trend reversals, such as forex market tops and bottoms. Low volatility levels can sometimes be used to time the beginning of new upward currency trading price trends following periods of consolidation.