This is a very interesting technique I learned from this video as I have never used ATR for forex trading. ATR measures the average true range of the top to bottom of what you can see in terms of that currency pairs range for that time frame.

The author of this video explains how to use this indicator for break outs. According the author of this video Average True Range indicator can be used to find healthy breakouts.

The author also explained an example of ATR for 2007 USDCAD currency pair.