True Range (TR)

The True Range (TR) is a volatility measure developed by J. Welles Wilder Jr., designed to provide a more comprehensive measure of daily price movement than the simple high-low range. It accurately accounts for market volatility by considering not only the current period’s high-low range but also any price gaps that may have occurred from the previous period’s close. While rarely used as a standalone indicator, True Range is the essential, foundational component used to calculate the Average True Range (ATR), one of the most widely used volatility indicators.

Function Syntax

=TR(data)  

• data (array):
  Range of columns containing the date, Open, high, Low, close, volume data.

Returns:
A two-column array of dates and their corresponding TR values.

Output Example

Below is an example of the resulting array when applying the custom =TR() function.