ATR indicator

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

Hi mates

I am new to the experts and indicators features in the MT4

I was wondering, can someone explain to me in a brief how to use the ATR indicator?

2

One way of using ATR is to compare historical and present values of the indicator. Usually in times of really low indicator readings the price is consolidating and you can expect a breakout.

Another good use of ATR is for setting price targets. For example - if Daily ATR shows the average movement for the pair is 100 pips a day and you are a entering a position that you know you will close at the end of the day and the price has already moved 80 pips that day, you can’t really expect another 100 pip move that day.

I also use ATR for trailing my stops. When I find a pair that is fallowing a particular moving average very well, I set up my stop under/above this moving average by half of ATR value.

Hope that helped a bit,
Martin Janson

3

I agree with this. One of my systems looks for very low ATR values. You can usually expect good price movement the next day.

4

[QUOTE=“Sirlighted;618674”]Hi mates I am new to the experts and indicators features in the MT4 I was wondering, can someone explain to me in a brief how to use the ATR indicator?[/QUOTE]

ATR measures volatility.
Certain strategies perform better with more volatile instruments.

5

Thanks! Cleared a lot of doubts I had about ATR and its usage…

6

[QUOTE=“pipskiller;624458”]Thanks! Cleared a lot of doubts I had about ATR and its usage…[/QUOTE]

Glad to help