The Average True Range (ATR) Forex indicator for Metatrader 5 measures market volatility over 14 periods.
The default 14 periods can be easily changed by editing the indicator’s inputs.
For instance, if you want to measure market volatility over a longer period, set the value to 50 (swing trading).
If you want to measure market volatility over a shorter period, set the value to 5 or 10 (scalping and day trading).
Often, the ATR indicator is being used for stop loss placement.
- In low volatile markets, the stop loss will be placed closer to the entry level.
- In high volatile markets, the stop loss will be placed further away from the entry level.
The indicator is solid, 100% non-repaint, and will not slow down your trading platform.
- Measures market volatility
- Good for stop loss placement
- Works for any currency pair
- Works for any time frame
- Programmed for Metatrader 5
The image below shows the ATR indicator applied to the EUR/USD 15-minute trading chart.
How to interpret this indicator?
- A spike in the ATR value indicates that market volatility has increased
- Place your stop loss further away from the entry level
- Low ATR values indicate low market volatility
- Place your stop loss closer to the entry level
How to install the ATR Forex indicator on Metatrader 5?
- Open the trading platform and click on “File” (top menu)
- Navigate to the “open data folder”
- Navigate to the MQL5 indicators folder
- Copy the ATR indicator file in this folder
- Close and restart the MT5 trading platform
- You will find the indicator in the custom indicators list
- Select it and attach to any chart of your preference
How to remove the indicator from the chart?
- Click with the right mouse button in the chart
- Select the indicator list from the drop down menu
- Delete the indicator from the list
- Press close to save the new chart configuration
Make yourself familiar with this trading indicator and fully understand how it works before using it in a real account.