Knowledge center · Technical analysis
ATR (14)
Average True Range — the stock’s typical daily trading range, shown as a percentage of price.
Formula
Wilder-smoothed average of the true range (max of high−low, |high−prior close|, |low−prior close|).
Interpretation
A 3% ATR means a normal day moves the stock about 3%. The engine also reports where today’s ATR sits in the stock’s own one-year distribution — the volatility regime.
What good looks like
Compressed ATR (low percentile) — quiet ranges often precede larger directional moves.
What bad looks like
Elevated ATR (top percentile) — position sizing and stop distances must widen; risk per share is higher.
Typical range
Large caps commonly 1–3% of price; high-beta names 4–8%.
Limitations
Says nothing about direction; regime shifts can be abrupt.
How OmniSignal uses it
Volatility is the denominator of every position-sizing decision; ignoring it is how correct ideas lose money.
Where it enters the score
Not this display value directly — but the engine’s risk score uses volatility percentiles of the same construction, and high-vol regimes rebalance the sleeve weights.
References
Wilder (1978)
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