How is ATR extension different from percent distance from a moving average?

Percent distance treats every stock the same regardless of how much it normally moves. ATR extension divides that distance by the stock's own Average True Range, so the reading reflects how unusual the move is for that specific stock.

Home/Trading Tools/ATR Extension From Moving Average

Technical Analysis Tools

How many ATRs is a stock stretched above or below its moving average right now?

Q: How many ATRs is a stock stretched above or below its moving average right now?

Calculates how many Average True Ranges a stock's current price is extended above or below a moving average, a volatility-normalized measure of how stretched a move is.

Every habit in this library exists because I paid tuition for the mistake first.

Jason Parker, Founder of Trading Habits

Enter Price, Moving Average, and ATR

Use any moving average length and ATR length you normally trade with, as long as they're both current.

Your Result

Fill in the fields on the left and click Calculate to see how stretched this stock is, in ATR terms.

How this is calculated

Extension in ATR terms equals the current price minus the moving average, divided by the ATR value. The result is expressed as a number of ATRs, not dollars or percent, so it's comparable across stocks with very different volatility.
This differs from a plain percent-distance reading because it adjusts for how much this specific stock normally moves. A $2 extension is minor for a stock with a $5 ATR and severe for a stock with a $0.50 ATR.
Historically, larger extensions from a short-term moving average have more often been followed by a pullback or sideways consolidation than by continued straight-line movement. That's a tendency seen across many stocks over time, not a rule, and any individual stock can keep extending well beyond what looks stretched.
This tool does not calculate the moving average or ATR for you. Pull both current values from your charting platform.

Risk & liability disclaimer: This calculator produces a mathematical estimate based on the price, moving average, and ATR you enter, and it does not predict future price movement. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. We do not guarantee this tool is error-free or suitable for your situation. Always verify results independently and consult a licensed professional before making any trading or financial decision. Trading involves risk of loss, and you could lose some or all of the capital you trade with.

How many ATRs is a stock stretched above or below its moving average right now?

Enter Price, Moving Average, and ATR

Your Result

How this is calculated

More Trading Tools