Average True Range is a specific Trading coordinate in the Bitcoin knowledge graph. In practical terms, it identifies the subject described here: A volatility measure based on trading ranges and gaps, often used to scale stops and positions. This definition is narrower than promotional usage and should be read together with the implementation, date and evidence attached to the entry.
Average True Range is best understood as part of a system rather than as an isolated definition. Its related coordinates show the mechanisms, incentives and historical records that give the term practical meaning.
Average True Range describes how participants value, trade or obtain exposure to bitcoin. Market behavior can affect adoption and mining economics, but it does not rewrite consensus rules. Price evidence and protocol evidence answer different questions.
Understanding Average True Range helps distinguish a verifiable Bitcoin mechanism or historical record from slogans, products and market narratives.
Primary or authoritative records make these details checkable: Average True Range smooths the maximum of high-low, high-previous-close and low-previous-close ranges; it measures price movement in quote units and depends on bar construction, lookback and smoothing. They should be verified before using the coordinate in analysis.
The practical limit is: ATR measures magnitude, not direction or probability; a wider stop does not make a trade safer without position-size adjustment; gaps, thin markets and exchange sessions affect the input. A definition, office, chart pattern or published claim is not by itself a prediction or Bitcoin consensus rule.
For the clearest picture, read this entry together with Volatility, Stop-loss, Position sizing, Trend following, ADX, Technical analysis. The reverse links also lead from Bollinger squeeze, ADX, Trend following, Position sizing.