The Average True Range (ATR) Forex indicator for Metatrader 5 tracks market volatility and is often used for take profit and stop loss calculations.
Generally speaking:
- A high ATR indicator reading = high market volatility
- A low ATR indicator reading = low market volatility
Typically, the ATR period is set to 14.
The Average True Range indicator for MT5 is displayed in a separate chart window as a blue colored line that shows market volatility.
How to use ATR in Forex?
- In highly volatile markets (high ATR reading), traders use a wider stop loss and larger take profit target.
- In low volatile markets (low ATR reading), traders use a smaller stop loss and smaller take profit target.
The indicator contains the following inputs and parameters: ATR period (14).
First, familiarize yourself with this technical indicator and test it on a demo account.
It supports all time frames and Forex pairs.
Free Download
Chart Example
The following chart shows what the Average True Range (ATR) indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Average True Range (ATR) Forex Indicator?
The ATR indicator does not generate any buy and sell signals.
It doesn’t tell you where the market is heading to, it only informs you about past and current market volatility.
Please use it together with an existing system or trading strategy.
