What does ATR stand for in the context of the STARC Band?

ATR stands for Average True Range, which is a technical analysis indicator used to measure market volatility. In the context of the STARC Bands, which are used to identify potential price trends and volatility, the Average True Range is particularly important because it calculates the average range between the high and low prices over a specified period, along with incorporating gaps from the previous close to the current high or low. This measurement provides traders with insights into how much an asset typically moves during a given timeframe, allowing for better risk management and setting of price targets.

The relevance of ATR in STARC Bands helps traders determine when to enter or exit trades based on market volatility, enhancing their decision-making process. The use of ATR allows for a dynamic assessment of price movements, capturing the changing volatility landscape that fixed price patterns or trends may not adequately reflect. This is why ATR is a crucial component in the analysis performed with STARC Bands.