Normalized ATR (NATR): volatility as a percentage of price

The Normalized Average True Range (NATR) is the Average True Range (ATR): volatility, stops and position size divided by the closing price, times 100. It expresses a stock's typical daily movement as a percentage of its price. An NATR of 3 means the stock's 14-day average true range is 3% of today's close.

That one division makes ATR comparable. A $2 ATR on a $65 stock and a $48 ATR on a $930 stock look wildly different in dollars; as percentages, 3.1% and 5.2%, they can be compared directly. NATR is the right tool for ranking stocks by volatility, for checking whether a stock has become more or less turbulent over long periods, and for setting percentage-based stops. This guide computes it on Uber's chart and puts Uber side by side with Micron to show what normalization reveals.

Why normalize?

ATR is in dollars, so it scales with price. That creates two problems:

• Across stocks. A $50 stock and a $500 stock with identical percentage swings have ATRs ten times apart.
• Across time. A stock that triples will roughly triple its ATR even if it is no more turbulent than before.

Dividing by price removes both distortions. NATR reports volatility in the unit most traders actually think in for risk and position sizing: percent.

The formula

Note that the ATR in the numerator averages 14 days of true range while the close in the denominator is today's alone. After a big one-day price change, NATR moves partly because of the new close.

A worked example on Uber

On October 29, 2026, Uber (UBER) closed at $65.74. Its ATR (14) on Finabase's chart was $1.73.

Finabase's NATR (14) for that day is 2.63. A typical Uber trading day, gaps included, spanned about 2.6% of its price.

NATR on a real chart: Uber, with Micron for comparison

Uber fell from $96.49 to $65.74 over the year, about 32%, from a high of $100.35 in early November 2025 to a low of $64.04 on the last day. Its NATR stayed in a narrow band:

• Highest: 3.92% on February 13, 2026 (ATR $2.74, close $69.99).
• Lowest: 2.45% on October 13, 2026 (ATR $1.74, close $71.32).
• Average over the year: 3.3%.

Uber's ATR in dollars ranged from $3.19 at its highest to $1.73 at the end, which might suggest the stock had become much calmer. NATR shows that most of that change was the lower share price; relative to price, Uber's volatility hardly changed.

Now compare it with Micron, a far more volatile stock in 2026:

On the last day, Micron's ATR was $47.80 and Uber's $1.73, a ratio of 27 to 1. As percentages the ratio was about 2 to 1. Over the whole year, Micron's normalized volatility averaged 6.3% against Uber's 3.3%.

NATR versus historical volatility

Options traders and risk models usually measure volatility differently: as the annualized standard deviation of daily returns, often called historical or realized volatility. The two are related but not the same.

• Inputs. Historical volatility uses close-to-close returns only. NATR uses the full daily range and gaps, so a stock that swings widely during the day but closes near where it opened scores higher on NATR.
• Units. NATR is a typical daily range as a percentage of price. Historical volatility is scaled to a year, by multiplying the daily figure by about the square root of 252, roughly 15.9.
• Smoothing. NATR uses Wilder's 14-day smoothing; historical volatility is usually a plain 20- or 30-day window.

The two move together but not in a fixed ratio. Over the year in this data, Uber's average NATR of 3.3% went with an annualized close-to-close volatility of about 35%; Micron's 6.3% went with about 81%. The ratio differs because it depends on how much of a stock's movement happens within the day versus between closes. Use NATR for trading decisions on a chart, and historical or implied volatility when you are working with options.

How traders use NATR

Ranking by volatility. NATR is the natural way to sort a watchlist from calmest to most volatile, or to filter a screen, for example "NATR below 2%" for steady stocks.

Percentage stops. A stop set at a multiple of NATR, such as 2 × 2.63% ≈ 5.3% for Uber, adapts to each stock's volatility in the same units as the stop.

Volatility regime over long periods. On multi-year charts where the price has changed a lot, NATR shows whether a stock has really become calmer or wilder.

Position sizing in percent. Risking a fixed share of capital per trade, divided by an NATR-based stop distance in percent, gives a position size that is directly comparable across stocks.

Pitfalls and limitations

Today's close in the denominator. A sharp one-day price drop raises NATR even before the ATR has had time to react.

Still lagging. NATR inherits ATR's 14-day Wilder smoothing; after a shock it stays elevated for weeks.

No direction. Like ATR, NATR rises in sharp declines and sharp rallies alike.

Comparison table

See Average True Range (ATR): volatility, stops and position size and Bollinger Bands: formula, the squeeze and walking the bands.

How Finabase calculates and scores NATR

Finabase computes NATR with TA-Lib's NATR function on each bar's high, low and close. A new NATR study defaults to 14 periods and is drawn in its own panel, in percent.

NATR (14) appears in the technical gauge on the symbol page with its latest value and carries no Buy or Sell rule, so it always counts as neutral. Use it to compare volatility and to scale stops.

Frequently asked questions

What is the difference between ATR and NATR?

ATR is the average true range in dollars. NATR divides it by the closing price and multiplies by 100, giving the same information as a percentage of price, comparable across stocks.

What is a high NATR?

It depends on the asset class. For large US stocks in this data, around 2–3% was typical (Uber averaged 3.3%), while a very volatile stock like Micron averaged over 6%. Small caps and crypto often run higher.

Can I use NATR for stop-losses?

Yes. A multiple of NATR gives a percentage stop distance that adapts to each stock's volatility. Convert it to dollars with ATR when placing the order.

Summary

NATR divides the Average True Range by price, turning a dollar measure of daily movement into a percentage that can be compared across stocks and over time. Uber's chart showed a dollar ATR falling by almost half while its NATR barely moved, and the comparison with Micron showed a 27-to-1 gap in dollars shrinking to 2 to 1 in percent. Use NATR to compare and rank volatility, and ATR when you need dollars.