Importance of ATR(Average True Range)STATE BANK OF INDIANSE:SBINbhaskar_24So idea here is to calculate risk. understanding fear in the market ATR is an indication of volatility, not direction. A smaller ATR range means low volatility.. tentatively market is consolidating. A larger ATR range means the market is dealing with uncertainty so volatility has increased. you can see the value of ATR on your chart. the value of past ATR14period value is be greater than current ATR14 Period to take risk on a trades. it will help you reduce risk.