Adaptive ATR Channel Metatrader 5 Forex Indicator
The Adaptive ATR channel Metatrader 5 forex indicator was introduced in the 2011 December issue of TASC magazine in an article bothering around “Adjustable bands Z test”.
The indicator is comprised of a dual colored median line, that is bordered by two dotted lines to the upside and downside.
In addition to this, the indicator uses the Perry Kaufman’s efficiency ratio as adapting factor instead of adopting standard deviation ratio.
The bands in use are the ATR bands, which are adaptive as well, plus additional smoothing is applied to it in order to smoothen the bands.
Price is strongly bullish when it trades above the median line towards the upper dotted line, and strongly bearish if the reverse takes place.
The EUR/JPY H4 chart below displays the Adaptive ATR channel Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the median dual colored line of the Adaptive ATR channel Metatrader 5 forex indicator turns medium sea green.
Sell Signal: Go short when the median dual colored line of the Adaptive ATR channel Metatrader 5 forex indicator changes to dark orange.
Exit buy trade: Close all buy orders if while a bullish trend is running, the medium sea green colored median line of the Adaptive ATR channel indicator reverts to dark orange.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the dark orange median line of the Adaptive ATR channel indicator changes to medium sea green.
Tips: The Adaptive ATR channel indicator shares a lot of similarity to Keltner Channel in theory, but is actually designed differently.
The indicator performs quite well when added to longer timeframes, making it a strong candidate for long-term trading.
Use together with other technical indicators for scalping and day trading currency pairs.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (Period, Price, ATR multiplier), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the Adaptive ATR channel.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)