SEE WHAT THE MARKET IS TELLING YOU.

ATR averages the true trading range over recent periods to describe normal volatility. It says nothing about direction — it is used to size expectations, place stops at a sensible distance, and judge whether a move is unusual for that instrument.

Risk/reward compares the distance from entry to the target against the distance from entry to the stop loss. A 1:3 ratio means the planned upside is three times the planned downside. It describes the shape of a plan, never its probability of working.

RSI measures how strong recent gains are compared to recent losses over 14 periods. Readings above 70 are often described as overbought and below 30 as oversold. It is a momentum gauge, not a timing signal — strong trends can stay overbought or oversold for a long time.

Support is a zone where buying has previously slowed a decline; resistance is where selling has previously capped a rally. They are zones rather than exact prices, and they lose meaning once price closes decisively beyond them.

Volatility describes the size and speed of price changes. Higher volatility means wider swings in both directions and therefore larger potential gains and losses.