It's a dip, not a drop (says ATR)
Price and range typically move in opposite directions (you will pay more for a less volatile asset). The bottom chart (Average True Range) looks like a mirror image of the top (Price). For a perfect example I'm appending the same chat but have scrolled back to the COVID drop.
The ATR is in a larger downtrend that remains intact.
** It did not break out today. **
Until that changes, a price reversal remains a distinct possibility..
This is not a prediction. It's a reminder not to assume anything .
NOTE
**Chart shows the combined 3 index. They are weighted so that a 1 point change will imply the same change in $ terms. (For weights see https://www.barchart.com/futures/contract-specifications/indices
When price and ATR jive:
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.