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: