Average True Range Steps

Average True Range (ATR): low – high/total number of days, tells us the opportunities for a particular
day and whether volatility has been increasing or decreasing between the open and close, measures the
degree of volatility, sets expectations over a specific time horizon
1. Data, Yahoo Finance, input company, Historical Data, Time Period, Apply, Download Data
a. Save As, S&P500 ATR
2. Delete columns E, E, and G
3. Type “True Range” into E1
a. Type =C2-D2 into E2 Press ENTER
b. Click Data, CTRL+DOWN, select Ex, CTRL+SHIFT+UP, CTRL+D
4. Type “1D” into F1
a. Type = ((Sum(E2:E3)/2)/B3) into F2
b. Click Data, CTRL+DOWN, select Ex, CTRL+SHIFT+UP, CTRL+D
c. Right Click, Format Cells, Percentage, OK
d. Delete last cell, #DIV/0!, in column F
5. Type “Days” in to H3
a. In cell I3 type “5”
b. In cell J3 type “20”
c. In cell K3 type “60”
d. In cell L3 type “250”
e. In cell M3 type “750”
f. In cell N3 type “1250”
g. In cell O3 type “2500”
h. In cell P3 type “5000”
i. In cell Q3 type “12500”
6. Type “Years” into H2
a. In cell L2 type “1”
b. In cell M2 type “3”
c. In cell N2 type “5”
d. In cell O2 type “10”
e. In cell P2 type “20”
f. In cell Q2 type “50”
7. Average ATR
a. Select cell I4 and type “=average(F2:F6)”. Press Enter.
b. Select cell J4 and type “=average(F2:F21)”. Press Enter.
c. Select cell K4 and type “=average(F2:F61)”. Press Enter.
d. Select cell L4 and type “=average(F2:F251)”. Press Enter.
e. Select cell M4 and type “=average(F2:F751)”. Press Enter.
f. Select cell N4 and type “=average(F2:F1251)”. Press Enter.
g. Select cell O4 and type “=average(F2:F2501)”. Press Enter.
h. Select cell P4 and type “=average(F2:F5001)”. Press Enter.
i. Select cell Q4 and type “=average(F2:F12501)”. Press Enter.
j. Select cells I4 to Q4 and right-click within the selection and click Format Cells. Change
the category to Percentage and press OK to express these values as percentages.
8. Add Colors and Borders
9. Update by Filtering from oldest to newest
a. Manually add data at the bottom of the spreadsheet
b. Update the relevant cell formulas