Average True Range (ATR) Metatrader 4 Forex Indicator
The Average True Range indicator was developed by J. Welles Wilder.
The ATR indicator for Metatrader 4 measures volatility of any an currency pair or any other trading instrument that can be displayed on MT4.
The calculation of the indicator goes as follows:
Current ATR (value) = ((Prior ATR x 13) + Current TR)) / 14
This information is very useful if you want to look at how a currency pair’s volatility increases or decreases overtime.
Trades use the ATR for the placement of stop losses and to calculate take profit targets in a simply, yet effective way.
The EUR/USD 5 Min chart below shows the Average True Range forex indicator in action.
Basic Trading Signals
The ATR indicator does not deliver any buy and sell forex trading signals, nor does it provide an indication of where the trend is heading to, up or down.
The ATR indicator is used to measure volatility and traders use this information for stop loss placement and the easy calculation of take profit targets.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (ATR Period: default period value = 14) 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.mq4 indicator 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)