Latest Average True Range (ATR) Forex Indicator for MT4
Average True Range was developed by J. Welles Wilde. ATR in an indicator that is used to analyse uncertainty of market price based on past data on a timeframe and its basic purpose is to give information about markets past uncertainty.
Average True Range (ATR) Forex Indicator for MT4:
Average True Range use moving averages to get results. Average True Range is also a member of oscillator family. Average True Range work on single line moving curve.
How ATR indicator works?
Stop loss is a way of ignoring loss before market move in the opposite direction of your trade. To find out stop loss point ATR’s value is multiplying twice. For buy trade twice below the top and for sell twice above the level. Set stop at two pipes or 4 pipes to ATR. Average True Range has direct relation with price range, when the range will drop price will drop vice versa. For short time duration signals are powerful and for long time duration signals are less.
To calculate the ATR, you need to find the true range TRs first.
Markets trends are always varying in nature some time it moves in your benefit and sometime you bear loss when markets are aggressive there is a risk with high probability of profit while using ATR indicator case is same. High aggressive market hight ATR, Low aggressive Market Low ATR.
Features of Average True Range indicator for MT4.
Platform are: Meta Trader 4
Use charted graph for presentation and use three different colour lines.
Timeframe: few minutes, few hours and days trading
Currency pairs: any EUR/USD, XAU/USD and GBP/JPY etc.
Important point to know about Average True Range indicator for MT4:
If we say main use of True Range indicator is find when exit trade. ATR is considered as volatility indicator because it indicates previous high and lows, ATR have direct relation with high and lows of trend. This indicator helps to improve trading skills with its easier interface. Time is very important when finding TRs so you can choose best for you according to your trade it can be 14 days, 21 days and 22 day any time but most preferable according to my knowledge is 14D.
True Range indicator helps to determine the best spot for their trading Stop and it was designed to indicate market uncertainty. Traders use ATR to determine market uncertainty higher the uncertainty higher is stop for meanwhile, so they can manage their position in the market.
True Range indicator really does not provide signals about market direction or duration and buy and sell so, it will be better to attach additional indicator to get signal.
Average True Range indicator for MT4 major drawback is it’s not capable of finding price direction as its purpose for developing was to find out market aggressiveness for a product and assets.
