ATR (smoothed), sometimes written ATR-SMA, is just a simple moving average applied on top of the Average True Range. Raw ATR already smooths volatility with a Wilder average, but on noisy intraday data it can still jump around; taking an SMA of it produces a calmer reference line.
The usual workflow is comparison: plot raw ATR against its smoothed version and read the relationship. Raw ATR rising above the smoothed line means volatility is expanding (ranges are widening), while raw ATR falling below it means volatility is contracting (the market is coiling). Many breakout systems only arm when volatility is expanding, and many mean-reversion systems prefer the opposite.
Because it is two averages deep, ATR (smoothed) lags more than raw ATR. It answers 'is volatility unusual right now?' rather than giving the tightest possible stop distance.
Fórmula
ATR_SMA = SMA( ATR(atr_period), sma_period )
Ejemplo
Before a range breakout, raw ATR(14) crosses up through its 14-period SMA — confirmation that range is expanding, so the breakout entry is allowed to fire.
Cómo Noon Barbari usa ATR (smoothed)
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Use ATR (smoothed) in noonbarbari →Términos relacionados
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Average true range (ATR)
Rolling average of the true range — the canonical volatility measure for stops.
- Indicadores
Bollinger Bands
A moving average flanked by ±k standard deviations of price. k = 2 by default.
- Estadística
Standard deviation
Square root of variance — the most common volatility measure in trading.