Following the ATR on Shares of Northrop Grumman Corporation (NYSE:NOC)

Investors following the charts for Northrop Grumman Corporation (NYSE:NOC) may be taking note that the current ATR level is 7.74. The ATR or average true range was developed by J. Welles Wilder. The ATR tracks the distance that the stock price is moving each period. The ATR may be used by investors and traders to gauge when markets are likely to range, when extreme stock price levels are being approached, or if there is significant interest in a trend. ATR may be used as an indicator, but it may not predict anything by itself. Higher ATR’s may indicate that the stock is trending, and smaller ATR’s may be indicitive of stock price consolidation. The ATR range will be positive whether or not shares are trending up or down. ATR may allow traders to more accurately buy or sell into certain trends.

Keeping an eye on the all the day to day happenings in the stock market can be quite a task. Investors may need to try to focus in on the most important information when attempting to examine stocks to add to the portfolio. As earnings reports continue to roll in, investors may be taking a deeper look at some of the names that they have on their shortlist. Investors may also be taking a look at future estimates and guidance provided by companies in order to get a feel of how the stock price may be affected in the future. With the equity market still trading at super high levels, investors may be wondering how much higher some stocks in the portfolio can go. Maybe there are a few winners ....

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