Average Percentage True Range as a Normalized Volatility Measure

Summary

The document describes Average Percentage True Range (APTR), a volatility indicator attributed to a 2015 magazine article. It first calculates a percentage true-range value for each period using the high, low, and previous close, then applies a simple moving average over a configurable period. This normalization expresses range relative to price levels and includes gaps from the prior close in its inputs.

The document gives the formula and identifies the period as the sole configurable parameter, but provides no worked example, trading rules, performance evidence, or guidance for choosing that period. Its published formula also appears to contain a denominator or transcription issue in the third range component, so implementations should be checked against a reliable reference before use. APTR describes historical price movement; the text does not establish that it predicts future volatility or direction.

Key ideas

• APTR averages percentage true-range values over a configurable period.
• Its range calculation uses the current high and low alongside the previous close.
• The indicator expresses price movement in percentage terms rather than raw price units.
• The document offers no evidence about predictive power or trading performance.
• The third component of the printed formula appears potentially corrupted.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.