VideoCharts7 min read
What the RSI indicator actually tells you (and what it doesn't)
RSI measures how stretched a recent move is on a 0 to 100 scale. It is useful for timing, useless for prediction, and misread by most beginners.
Technical analysis
ATR (Average True Range)roz ka average utaar-chadhav
An indicator that measures how much a stock typically moves in a period, used to size stop losses and positions to the stock's volatility.
Average True Range, or ATR, measures how much a stock moves in a typical period, including gaps between sessions. It is usually calculated over 14 candles. A high ATR means big daily swings; a low ATR means a calm stock. ATR does not tell you direction, only distance. Traders use it to place stop losses that respect the stock's normal noise. If SBI's daily ATR is ₹12, a stop loss ₹3 below entry will almost certainly get hit by routine movement, while a stop ₹18 to ₹24 away gives the trade room. ATR also helps in position sizing: the wider the stop, the fewer shares you should buy for the same rupee risk. ATR changes over time, so recheck it rather than reusing an old number. It is a measuring tool, not a signal to buy or sell.
Related terms
Lessons that use this term
VideoCharts7 min read
Candlestick patterns for beginners: the five worth learning first
A candle is four prices drawn as one shape. Learn to read the shape first, then five patterns that only mean something at the right place on the chart.
Charts7 min read
Support and resistance: how to find the levels that matter
Support and resistance are the prices where the market has changed its mind before. Here is how to find the ones worth marking and how to use them with a stop.