◈

calculate_atr

IndicatorsATRVolatility

INSTALLATION

$python -c "exec(open('calculate_atr.py').read())"

#or paste directly into your Claude Code terminal

[ ABOUT ]

Computes the Average True Range by first calculating the True Range for each bar (the maximum of: high−low, |high−prev_close|, |low−prev_close|), then averaging the last `period` values. ATR measures volatility in absolute price terms rather than percentages, making it suitable for position sizing and stop loss placement.

For stop loss calculation, a common rule of thumb is to place stops at 1.5× to 2× ATR below the entry price for long trades. This approach automatically widens stops during high-volatility conditions and tightens them during calm markets, rather than using a fixed percentage that may be too tight or too wide depending on current market conditions.

[ USAGE EXAMPLE ]

example.py

atr = calc_atr(high, low, close, period=14)
stop_loss = entry_price - (1.5 * atr)
print(f"Stop loss: {stop_loss:.2f}")

[ FULL CODE ]

calculate_atr.py

def calc_atr(high, low, close, period=14): tr_list = [max(high[i]-low[i], abs(high[i]-close[i-1]), abs(low[i]-close[i-1])) for i in range(1,len(close))] return sum(tr_list[-period:])/period

[ METADATA ]

CategoryIndicators

ComplexityBeginner

LanguagePython 3.10+

TagsATR, Volatility

[ ASK CLAUDE ]

Ask AI about this skill before installing it.

[ RELATED SKILLS ]

calculate_rsi

Pure Python RSI calculation without external dependencies

indicator

calculate_ema

Exponential Moving Average with configurable period

indicator

calculate_macd

MACD indicator with configurable fast, slow, and signal periods

indicator