Average Percentage True Range with Configurable Moving Averages

Summary

The document explains an Average Percentage True Range (APTR) indicator that smooths a percentage-based true range using a user-selected moving average. Its inputs are the lookback period and moving-average method. The underlying range takes the maximum of three normalized price movements involving the high, low, and previous close, then the selected average is applied and scaled by 100.

A simple moving average reproduces the standard APTR calculation, while exponential, smoothed, and linear weighted averages provide alternative smoothing behavior. The text names a November 2015 magazine article as the indicator’s background and refers to example plots for the different methods. It does not supply comparative performance tests, trading rules, or guidance on parameter selection. APTR measures relative price range and may help characterize volatility, but the document does not establish that any particular averaging method improves trading outcomes.

Key ideas

• APTR expresses true range as a percentage of price and smooths it over a chosen period.
• The calculation uses high, low, and previous close values to form candidate range measures.
• The indicator allows simple, exponential, smoothed, and linear weighted averaging.
• The document provides no tested strategy or evidence that one averaging method performs better.

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