Lentz Volatility: Comparing ATR with Its Smoothed Average

Summary

The Lentz Volatility indicator compares the current Average True Range with a moving average of ATR. It subtracts ATR, calculated over a chosen ATR period, from a smoothed average of ATR. The resulting oscillator therefore expresses the difference between recent measured range and its smoothed baseline.

Its inputs are the ATR lookback, the smoothing period, and the smoothing method. The description gives the calculation but provides no trading rules, interpretation thresholds, charts, or performance evidence. It does not establish whether positive or negative readings predict future volatility or price direction, so users would need to evaluate those questions for their own instruments and settings.

Key ideas

• The indicator measures the difference between smoothed ATR and ATR.
• Its calculation uses an ATR period, a smoothing period, and a smoothing method.
• The description defines the formula but does not provide signal thresholds or trading rules.
• No evidence is given about predictive power or strategy performance.

Tags

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