Best ATR (Average True Range) Indicator For MT4 Download Free

This Indicator is known as the Average True range (ATR). It can be used to develop a complete trade system and it can be used in strategy as entering and exit signals.It is a volatility measure indicator. It is used as a signal on a market direction to measure the strength of price activity. Professionals use this indicator for many years for improving their trading.

This trading system is also used to remove the signals forthe trend, that are used to distract the traders for profitable trade


The average true range is an indicator and it measures volatility. It is developed by J. Welles Wilder in 1978 and mentioned in his book “New Concepts in Technical Analysis Systems”.

How to use ATR Levels Indicator MT4

It is used to develop a trading system. Many professionals use this indicator for better performance of their trading. In other words, the average true range is used to measure changes in the price in the market. It is used to trade stock, forex trading, and also for the trading of cryptocurrencies.

Best ATR Indicator

This is the best source to measure market performance for better trading. The trading of the last day and last hour does not give us enough data for making a better decision. So, the average true rangeindicator calculates the numbers and prepares planning for making a decision.

Theaverage true range is the set of 14 days; it shows the changes in chart of the past 14 days. In theAverage true range indicator,the ups and downs in value shown in the upper right corner in the window.

It uses the Bollinger band indicator as a collaborating tool, which is used to detect the volatility in the market trends. Bollinger band gives us more detail about the future. After entering a narrow range the increase and decrease in stock are faced by a trader. If there is breakout occurs in stock the trader faces the fast-changing in trading.

ATR Number & Value Indicator Chart MT4

For example, a company names “Hansen Natural Corporation” change its name to Monster Beverage Corporation(MNST), then the company’s price will be double in the next four months.

ATR Number mt4

The average true range is another way to look at volatility but, it doesn’t show the direction that how the breakout will occur. It will be added to the closing price.Then, the trader buys when the next day’s price increases from this price.

There is a lot of trading signals in it but we can find only the breakout points. The technique behind this signal is that when the price is high from ATR then there are changes that occur in increase and decrease. Taking a long position challenging that the stock goes upward direction.


This is a complete trading and volatility measure indicator. This indicator uses all the timeframes to trade but the best timeframe to trade with the help of this indicator is 14 days. ATR indicator is also used for forex trading and also for cryptocurrency trading.

Price Action Strategy

Currency Chart Indicator

This appliesto all the trader professionals and beginners. This is available for both short term trading and long term trading.

This indicator used different color schemes that help the traders in easy understanding and it also uses a specific level or pip that helps to differentiate between extreme high and extreme low spikes in the extreme spike indicator.

Average Daily Range Indicator MT5

This indicator will also collaborate with the Bollinger band, which is more beneficial for trading to improve trading. It is designed to use collaborative tools as different indicators. In this indicator, the distance between stop and closing price is adjusted automatically.

Average Daily Range Indicator MT5

Another technique is to use multiple ATRs on the variety of commodities, and financial futures.

Rules for Buy strategy

Step #1: Make Sure That Your Chart Setup arrangement looks like our Price Chart:

The ATR strategy has a chart arrangement with two windows:

  1. In the first window,the ATR shows your favorite currency set.
  2. In the second window, the ATR indicator will also connect with 20-EMA

Step #2: Waitinguntil the ATR Indicator Breaks the Above 20-EMA:

Wait for ATR Indicator breaks in 20-EMA the breakout is a sign of higher Volatility. In 20-EMA break in the ATR line is proof of a new trend.

Step #3: Check that Price Chart to make sure that the ATR Breakout is stick to a Price Breakout or not:

In ATR after the break of EMA-20, the trader wantsto change in price. If a trader wants to buy he should follow the bullish candle trend and also check the previous candle of last buying time.

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If the price breaks the changes is time to time then the best way is to follow this trend in the market.

Average True Range (ATR) in Pips Indicator Metatrader4

Average True Range indicator

Formula of ATR

The first step in calculating ATR is to find the best security value. In the trading day, the price of an asset is given to a specific limit but the original limit is more encompassing.

TR= Max[(H – L), Abs(H –CP), Abs(L –CP)]

ATR = (1/n) (n)(i=1)TRi


TRi = Particular true range

n = Time periodemployed


Trading time of ATR is 14 days in these days the trader generates more signals and in a long period many chances to generate fewer trading signals.

For example, in short-term trade of five days these days the traders want to analyses the changes in stock.  Then the trader should also calculate the five-day trading days.

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Use of ATR

The ATR does not use only for information about the current market situation but also use for the decision making process. There are many tools in ATR for improving trading performance: The basic use for the ATR indicator is to stop loss.

In the price of the trader, movements occur when the ATR is high. Then he set the stop loss to prevent the loss permanently and if the change is less the smaller stop loss is set. The additional way to check your price data is by adding a moving average.

This is mostly used for a long-term trade. In long-term trading, the wider stop loss set in the ATR will also tell how to take profit when volatility is high. So this is very essential for trading.