ATR – This indicator does not fit properly in the oscillators, but we’ve added to this section as a tool outside of the price chart. It is used only to indicate the price volatility, therefore, it is not able to measuring neither the length nor the direction. Is almost useless in our case, but with other indicators, can show us situations where the volatility is not good for our purposes. The ATR is rarely used by traders.
As it is clear, in the picture above, we have a low volatility situation, followed by a high volatility peak and then end up in a phase of low volatility. The tool at least says that the candles already tell us, because as you know a very short candle indicates a low volume situation, whereas a tall candle indicates a high volume situation.