About the Indicator
The DAT ATR Forex Indicator for MT4 is built on the Average True Range (ATR), a widely used measure of volatility in the markets.
It helps traders spot when volatility expands or contracts, giving a clearer view of potential trading opportunities.
With this tool, you can identify breakout moves, set stop-loss levels that adapt to market conditions, and avoid low-volatility periods that often lead to false trades.
It is useful for both beginners and experienced traders who want to bring volatility into their trading strategy.
Free Download
Download the “dat-atr-indicator.mq4” indicator for MT4
Key Features
- Measures market volatility with ATR calculations
- Adapts stop-loss and take-profit levels dynamically
- Works on all pairs and timeframes
- Filters out low-volatility markets
Indicator Example Chart (EUR/USD H1)
The example chart below displays the DAT ATR MT4 indicator in action on the trading chart.
How To Trade Using This Indicator
The DAT ATR indicator can be applied to entries, stop-loss, and take-profit management.
Entry Rules
- Buy: Enter long when the price breaks resistance while the ATR rises.
- Sell: Enter short when price breaks support while ATR increases.
Stop Loss & Take Profit
- Set stop loss at 1.5x ATR to match volatility.
- Take profit at 2x ATR or next support/resistance.
- Use ATR-based trailing stops for longer trends.
Download Now
Download the “dat-atr-indicator.mq4” indicator for Metatrader 4
ATR-Based Trend MT4 Strategy with DAT ATR & PowerTrend Indicator
This strategy combines the DAT ATR Forex Indicator with the PowerTrend MetaTrader 4 Forex Indicator to identify high-probability trend-following opportunities.
By leveraging the Average True Range (ATR) for volatility assessment and the PowerTrend indicator for trend direction, traders can make informed decisions in various market conditions.
What Is This Strategy About?
The DAT ATR Forex Indicator provides trading signals based on the Average True Range (ATR) technical indicator.
This information helps traders assess market volatility and potential breakout opportunities.
The PowerTrend MetaTrader 4 Forex Indicator, on the other hand, scans for buy and sell trade opportunities on any pair and for any timeframe.
It provides visual signals to indicate the strength and direction of the trend, aiding traders in identifying favorable entry points.
By combining these two indicators, traders can enter trades when both the ATR indicates sufficient volatility and the PowerTrend confirms a strong trend direction, thereby increasing the probability of successful trades.
Buy and Sell Rules
Buy Setup
- Wait for the DAT ATR indicator to show a significant increase in volatility, indicating a potential breakout.
- Ensure the PowerTrend indicator displays a bullish blue signal, confirming an uptrend.
- Enter a buy trade when both conditions are met.
- Place your stop loss below the recent swing low or a key support level.
- Set your take profit based on a favorable risk-to-reward ratio or near a significant resistance level.
Sell Setup
- Wait for the DAT ATR indicator to show a significant increase in volatility, indicating a potential breakout.
- Ensure the PowerTrend indicator displays a red bearish signal, confirming a downtrend.
- Enter a sell trade when both conditions are met.
- Place your stop loss above the recent swing high or a key resistance level.
- Set your take profit based on a favorable risk-to-reward ratio or near a significant support level.
Trader Case Studies
Below are examples of traders from diverse regions who successfully used this ATR and trend-based strategy on various currency pairs and timeframes.
Sofia M – Portugal
Sofia M, a swing trader from Portugal, applied this strategy on the EUR/USD and GBP/USD pairs over 30 days. By combining volatility signals with trend confirmation, she earned a total of +456 pips.
Jamal K – Nigeria
Jamal K, a full-time trader in Nigeria, used this system on USD/JPY and AUD/USD pairs for 25 days. His discipline and adherence to the strategy resulted in gains of +285 pips.
Helena R – Poland
Helena R, a day trader from Poland, tested the strategy on NZD/USD and USD/CAD pairs for six weeks. Her focused execution produced a profit of +672 pips.
Disclaimer: These case studies are for educational purposes only. Actual trading results vary based on market conditions, risk management, and individual discipline.
Advantages
- Combines volatility assessment with trend confirmation for higher probability trades.
- Helps avoid entering trades during low volatility or ranging markets.
- Clear entry and exit points based on objective indicator signals.
- Works across multiple currency pairs and timeframes.
Drawbacks
- May miss some profitable trades in less volatile market conditions.
- Requires patience waiting for both indicators to align.
Strategy Conclusion and Tips
This strategy is ideal for traders who want to combine volatility-based entry signals with trend-following confirmation to increase their trading edge.
The DAT ATR indicator filters out low-volatility noise, while the PowerTrend indicator ensures trades follow the dominant market direction.
Test the strategy on a demo account first to get familiar with the signals and timing.
Indicator Specifications
| Platform: | MetaTrader 4 |
| Type: | ATR-based Volatility Indicator |
| Timeframes: | All |
| Pairs: | All currency pairs |
| Inputs: | ATR Period (default 14), ATR Multiplier |
FAQ
1. Can I use it for scalping?
Yes. On M1 or M5 charts, it helps catch short bursts of volatility.
2. Does it repaint?
No. ATR calculations are stable and do not repaint.
3. What ATR period works best?
The default 14 works well. Shorter periods (7–10) give faster signals.
4. Can it be combined with other tools?
Yes, pairing ATR with trend indicators improves accuracy.
5. Is it beginner-friendly?
Yes. ATR is simple to read—high values mean strong moves, low values mean quiet markets.
Final Words
The DAT ATR Forex Indicator gives traders a simple but powerful way to measure volatility.
Instead of using fixed levels, it adjusts stop-loss and take-profit targets in line with the market.
Combined with trend indicators or support and resistance, it helps traders boost win rates, avoid false entries, and capture bigger price moves.
