ATR Trailing Stop Metatrader 4 Forex Indicator
The ATR Trailing Stop Metatrader 4 forex indicator is a stop and reverse trend following indicator based on Average True Range.
The forex indicator draws buy and sell signal lines below and above the currency pair.
- A blue colored line aligned below price is considered a buy trade signal
- A red colored line aligned above price is considered a sell trade signal
For buy trades, place a stop-loss 2 pips below the blue ATR Trailing Stop signal line and trail it up, but keep the SL 2 pips below the blue line.
For sell trades, place a stop-loss 2 pips above the red ATR Trailing Stop signal line and trail it down, but keep the SL 2 pips above the red line.
This simple forex system works well for scalpers and day traders.
The EUR/USD 15-Minute chart below displays the ATR Trailing Stop Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the ATR Trailing Stop MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade position when the color of the ATR Trailing Stop indicator changes from red to blue, this is a bullish trend.
Sell Signal: Open sell trade position when the color of the ATR Trailing Stop indicator changes from blue to red, this is a bearish trend.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Back period, ATR period, Factor) Colors, 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 atr-trailing-stop.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)