The Average Range True (ART) indicator is a technical analysis tool used by traders to measure market volatility. It is derived from the True Range (TR), which is the greatest of the following: the difference between the current high and low, the difference between the previous close and the current high, or the difference between the previous close and the current low.

The ART indicator averages these true ranges over a specified period, giving traders an understanding of how much an asset's price typically fluctuates during that time frame.

Traders use the ART indicator to set stop-loss orders, determine position sizing, and gauge market trends. In trending markets, a high ART value suggests increased volatility, signaling potential breakouts or trend reversals. Conversely, a low ART value indicates a more stable market, where price movements are less erratic.

The ART indicator helps traders manage risk by aligning their strategies with market conditions. For example, in a highly volatile market, traders might widen their stop-loss levels to avoid getting stopped out by random price fluctuations. Overall, the ART indicator is a valuable tool for enhancing trading decisions by providing insights into market volatility.

The Average Range True (ART) indicator measures market volatility by calculating the average true range of price movements over a specified period. Unlike the Average True Range (ATR) indicator, which focuses on a fixed period, ART adapts dynamically to changing market conditions. It considers the true range, which is the greatest of the current high minus the current low, the absolute value of the current high minus the previous close, or the absolute value of the current low minus the previous close. ART helps traders identify potential price breakouts, reversals, and periods of consolidation. By understanding market volatility through ART, traders can make more informed decisions regarding stop-loss placements, position sizing, and timing their entries and exits.