ATR Ratio Indicator
The ATR Ratio Indicator combines elements of the Average True Range to assess volatility and risk in trading. It typically measures the ATR over a specified period and compares it to the price movement of an asset, allowing traders to identify favorable risk-to-reward ratios. By using the ATR ratio, traders can make more informed decisions about position sizing and stop-loss placement, as it provides insights into how much the asset typically fluctuates, helping to optimize trade management and improve overall strategy effectiveness.