RTR Oscillator: Comparing Fast and Slow ATR
Summary
The Range To Range (RTR) oscillator compares recent and longer-term volatility by dividing a fast-period Average True Range (ATR) by a slow-period ATR, then scaling the ratio by 100. Its two inputs are the periods used for the fast and slow ATR calculations. A value above or below 100 therefore indicates that the fast ATR is respectively greater or smaller than the slow ATR, assuming both are positive.
The document defines the calculation but does not provide signal thresholds, trading rules, parameter recommendations, or empirical results. It also gives no guidance on how to combine the oscillator with price direction or manage trades. RTR is thus presented as a volatility comparison tool rather than a tested standalone strategy; its usefulness depends on interpretation and validation for the instrument and time frame being studied.
Key ideas
- RTR expresses the fast ATR relative to the slow ATR as a percentage.
- The oscillator requires a fast ATR period and a slow ATR period.
- A reading relative to 100 indicates whether fast volatility is higher or lower than slow volatility.
- The document does not specify thresholds, trading rules, or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.