Average True Range (ATR) measures how much a market typically moves over a given period, in price terms. It's computed as a rolling average of the "true range" of each bar (the greatest of high minus low, high minus prior close, and prior close minus low), usually over 14 periods.
ATR doesn't say anything about direction, only magnitude. A coin with a high ATR is moving a lot bar to bar, whichever way it's going. A low-ATR coin is quiet.
Every strategy in zengtrade's library uses ATR for the same job: sizing the stop. Instead of a fixed dollar or percent stop, positions exit at a multiple of the current ATR, so the stop automatically widens on a volatile coin and tightens on a calm one, rather than being blown out by normal noise on a wild day or sitting uselessly far away on a quiet one.
Educational content, not investment advice. zengtrade is paper-first and non-custodial.