ATR Channels Forex Breakout Indicator For MT4
The ATR channels Forex breakout indicator provides you with interesting market volatility data that can be used to trade very powerful price range breakouts.
It works similar to the traditional ATR technical indicator but this version makes it more easy to trade because it shows market volatility directly on the Metatrader 4 activity chart.
Interpret the ATR channel indicator as follows:
- A narrow ATR channel indicates low market volatility.
- A wide ATR channel indicator high market volatility.
As you may know or not, the ATR channels Forex indicator can be used to identify the start of possible trading range breakouts.
Below, we will explain how to trade breakouts with the ATR channel indicator.
Feel free to experiment with the different indicators parameters and settings.
The ATR channels indicator fits to any trade style of your preference (scalping, day trading, swing trading).
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ATR Channels Forex Breakout Indicator Chart
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
You can apply the indicator to any currency pair and time frame of your preference.
Finding Buy and Sell Triggers With The ATR Channels Forex Breakout MT4 Indicator
Below is an example of how to buy and sell currency pairs with this Forex indicator:
Buy Trigger: Identify low market volatility on the chart (narrow ATR channel bands) and the accompanying trading range during this low market volatility period.
Open a buy breakout trade when market volatility increases and price closes about the high of the trading range.
Place a protective stop loss just below support, or use your own stop loss placement strategy.
Close the buy trade for a reward/risk ratio of 2.5 or better.
Sell Trigger: Identify low market volatility on the chart (narrow ATR channel bands) and the accompanying trading range during this low market volatility period.
Open a sell breakout trade when market volatility increases and price closes below the low of the trading range.
Place a protective stop loss just above resistance, or use your own stop loss placement strategy.
Close the sell trade for a reward/risk ratio of 2.5 or better.
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Period ATR, MA periods, MA type, multi factor, colors, width, style.
The indicator can be used as a stand-alone signals indicator.
It can also be combined with:
- Trading oscillators (MACD, Stochastic, RSI,…)
- Trend indicators (Moving Average, Bollinger Bands, ADMI,…)
- Price action methods and techniques
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: ATR
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.