The Average Range Table displays the average daily range for the last 4 weeks and 13 weeks in both % and pips.
The table can be used to quickly identify increasing and decreasing volatility. In general, volatility is increasing if the 4 week average range is greater than the 13 week average range an decreasing if the 4 week average range is less than the 13 week average range.
In general, I’ll concentrate on markets that are moving more (higher ATR). ATRs of at least 2% are preferred for my style of trading (more likely to follow through on technical events and respond quickly to support/resistance) and are said to have a higher ‘tradeability’. The figures are also helpful in determining risk on trades. For example, one may prefer to risk no more than a specific fraction or multiple of ATR.