The average true range (ATR) Forex MT4 indicator, developed by J. Welles Wilder measures currency market volatility.
The ATR is a great indicator for measuring a Forex pair’s volatility and then using this information to trade explosive breakouts before they even occur.
Understanding ATR values:
- A low ATR value indicates that market volatility is low.
- A high ATR value indicates that market volatility is high.
The ATR indicator can be used to trade powerful trading range breakouts.
Breakouts frequently occur on high volume (see below how to trade ATR breakouts).
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Download the “ATR.ex4” Metatrader 4 indicator
Average True Range (ATR) Forex 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 Average True Range Forex Technical Analysis Chart Indicator
Below is an example of how to buy and sell currency pairs with this Forex indicator:
Buy Trigger: Identify low market volatility with the ATR indicator and the accompanying trading range during this period.
Open a buy trade when price closes above the high price of the low market volatility trading range.
Usually, the breakout occurs on higher market volatility.
Place initial stop loss 3 pips below the trading range, or use your own stop loss placement method.
Close the buy trade for a reward/risk ratio of 3.0 or better.
Alternatively, take profit at predetermined profit target level, for example 100 pips on the H1 swing chart.
Sell Trigger: Identify low market volatility with the ATR indicator and the accompanying trading range during this period.
Open a sell trade when price closes below the low price of the low market volatility trading range.
Usually, the breakout occurs on higher market volatility.
Place initial stop loss 3 pips above the trading range, or use your own stop loss placement method.
Close the sell trade for a reward/risk ratio of 3.0 or better.
Alternatively, take profit at predetermined profit target level, for example 50 pips on the M15 intraday chart.
Download This Forex Indicator Now
Download the “ATR.ex4” MT4 indicator
Adjustable Parameters
ATR period, colors, width, style.
Usage
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
Installation
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.
