The ATR Labeled Calculator Forex indicator for Metatrader 4 can be used together with any Forex trading strategy or system to confirm entry and exit signals.
The indicator calculates and plots the current and previous ATR (Average True Range) values on the chart.
Free Download
Download the “atr-chart-labeled.mq4” indicator for MT4
Indicator Example Chart (EUR/USD H4)
ATR Labeled Calculator + Bollinger Bands Stop V2 Strategy for MT4
This strategy combines the precise volatility measurement of the ATR Labeled Calculator Forex Indicator with the dynamic trailing stop and trend filtering of the Bollinger Bands Stop V2 Indicator.
Together, these tools help traders identify strong trend entries and manage exits effectively on the MetaTrader 4 platform.
What Is This Strategy About?
The ATR Labeled Calculator indicator displays the Average True Range with clear labels, helping traders gauge current market volatility and set realistic stop loss and take profit levels.
The Bollinger Bands Stop V2 Indicator uses Bollinger Bands combined with a trailing stop mechanism to signal trend direction and generate stop loss alerts that adapt to price movements.
This strategy aims to enter trades during strong trending phases confirmed by ATR volatility levels and exit using dynamic Bollinger Band stops.
Buy Rules
- Check that the ATR value from the ATR Labeled Calculator indicates sufficient volatility to support a trade.
- Wait for the Bollinger Bands Stop V2 Indicator to signal an uptrend, usually shown by price closing above the Bollinger Bands stop line.
- Enter a buy trade at the open of the next candle after confirmation.
- Set stop loss using the Bollinger Bands trailing stop line or at a multiple of the ATR value below the entry.
- Use the ATR value to calculate take-profit targets based on the current market volatility.
- Trail stops with the Bollinger Bands Stop V2 to lock in profits as the trend develops.
Sell Rules
- Ensure ATR indicates adequate volatility from the ATR Labeled Calculator.
- Wait for the Bollinger Bands Stop V2 to signal a downtrend, often when price closes below the trailing stop line.
- Enter a sell trade at the next candle open once confirmed.
- Place a stop loss above the Bollinger Bands trailing stop or at a calculated ATR multiple above the entry price.
- Set take profit targets considering the ATR volatility measurement.
- Trail stops using the Bollinger Bands Stop V2 trailing mechanism to protect gains.
Advantages
- Volatility-based trade sizing: ATR provides clear data for stop loss and take profit calculation.
- Dynamic trailing stops: Bollinger Bands Stop V2 adapts stops to price action, reducing premature exits.
- Trend confirmation: Helps avoid false signals by filtering trades with volatility and trend alignment.
- Suitable for trending markets: Works well on M30, H1, and H4 timeframes.
Drawbacks
- Requires volatility: Strategy is less effective during low volatility or sideways markets.
- Possible lag in stops: Trailing stops may trail price too loosely during rapid reversals.
- Patience needed: Traders must wait for both volatility and trend conditions before entering.
Final Thoughts
By combining the ATR Labeled Calculator Forex Indicator with the Bollinger Bands Stop V2 Indicator, traders gain a powerful toolkit for trading strong trending moves with adaptive risk management.
This strategy leverages volatility data to size trades appropriately while using dynamic trailing stops to maximize profits and minimize losses.
Proper money management and discipline remain essential for success.
Indicator Specifications
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Input Parameters: ATR period, offset, color settings & style
Indicator type: ATR
Download Now
Download the “atr-chart-labeled.mq4” indicator for Metatrader 4
Usage:
Works for any trade style: scalping, day trading and swing trading .
The indicator needs to be combined with an existing strategy or system.
Installation:
Open the Metatrader 4 platform
From the top menu, click on “File”
Then click on “Open Data Folder”
Then double click with your mouse button on “MQL4”
Now double click on “Indicators”
Paste the atr-chart-labeled.mq4 indicator in the Indicators folder.
Finally restart the MT4 platform and attach the indicator to any chart.
How to remove the indicator?
Click with your right mouse button in the chart with the indicator attached onto it.
Select “Indicator List” from the drop down menu.
Select the indicator and press delete.
How to edit the indicator’s inputs and parameters?
Right click with your mouse button in the chart with the indicator attached onto it.
From the drop down menu, click on indicators list.
Select the indicator from the list and press edit.
Now you can edit the indicator.
Finally, press the OK button to save the updated configuration.
