About the Indicator
The ATR Levels Forex Indicator for MetaTrader 4 is based on the Average True Range (ATR) and identifies significant price levels of support and resistance on the chart.
It helps traders spot potential reversal points or areas where price may pause, aiding in setting take-profit and stop-loss levels effectively.
Key Features
- Dynamic Support & Resistance: Levels adjust based on current market volatility.
- Non-Repainting: ATR Levels horizontal lines do not repaint, ensuring reliable signals.
- Customizable Inputs: Adjust ATR period, color settings, and style to fit your trading preferences.
- Versatile Timeframes: Suitable for any timeframe, enhancing flexibility in trading strategies.
Free Download
Download the “ATR_Levels.mq4” indicator for MT4
How It Works
The ATR Levels Indicator calculates volatility-based support and resistance levels derived from ATR calculations.
These levels are plotted as horizontal lines on the chart, providing clear zones where price may reverse or pause.
Traders can use these levels to identify optimal entry and exit points, enhancing trade timing and risk management.
Indicator Example Chart (GBP/USD H1)
How to Trade Using This Indicator
Use the ATR Levels Indicator in combination with your trading strategy by following these guidelines:
Buy Setup:
- Confirm an uptrend with your preferred trend indicator.
- Wait for price to approach or bounce off an ATR-based support level.
- Enter a buy trade at the next candle open following confirmation.
- Place a stop loss just below the ATR support level or recent swing low.
- Set your take profit near the next ATR resistance level or trail your stop according to your trend indicator.
Sell Setup:
- Confirm a downtrend with your preferred trend indicator.
- Wait for the price to approach or bounce off an ATR-based resistance level.
- Open a sell trade at the next candle open after confirmation.
- Place a stop loss just above the ATR resistance level or recent swing high.
- Set your take profit near the next ATR support level or trail your stop in line with your trend indicator.
You may combine the ATR Levels Indicator with any other trading method or system to open and close trades effectively.
Download Now
Download the “ATR_Levels.mq4” indicator for Metatrader 4
ATR Levels + BSI Trend Indicator Strategy for MT4
This strategy combines the dynamic volatility zones from the ATR Levels Forex Indicator with the trend direction and strength signals from the BSI Trend Indicator.
Together, they help traders identify strong trends and key price levels to enter and exit trades with better timing on the MetaTrader 4 platform.
What Is This Strategy About?
The ATR Levels indicator plots volatility-based support and resistance levels derived from Average True Range calculations, giving traders clear zones where price may reverse or pause.
The BSI Trend Indicator provides easy-to-read trend direction signals using color-coded bars or lines that indicate bullish or bearish momentum.
By combining these, traders can align trend direction with volatility levels to enter high-probability trades and manage risk effectively.
Buy Rules
- Confirm the BSI Trend Indicator signals an uptrend, usually indicated by green bars or lines.
- Wait for the price to approach or bounce off an ATR support level from the ATR Levels Indicator.
- Enter a buy trade at the open of the candle after both conditions are met.
- Place a stop loss just below the ATR support level or recent swing low.
- Take profit near the next ATR resistance level or trail stops along with the BSI Trend Indicator.
Sell Rules
- Confirm the BSI Trend Indicator shows a downtrend, often with red bars or lines.
- Wait for the price to approach or bounce off an ATR resistance level.
- Open a sell trade at the next candle open after confirmation.
- Place a stop loss above the ATR resistance level or recent swing high.
- Set the take profit near the next ATR support level or trail stops with the BSI Trend Indicator signal.
Advantages
- Dynamic support and resistance: ATR Levels adapt to current market volatility for relevant zones.
- Clear trend identification: BSI Trend Indicator provides simple and reliable trend signals.
- Risk management: Well-defined stop loss and take profit levels based on ATR zones.
- Applicable to various timeframes: Effective on M15, H1, and H4 charts.
Drawbacks
- Less effective during consolidation: Signals may be less reliable in sideways markets.
- Lagging signals: Trend indicators can lag price during sharp reversals.
- Requires discipline: Waiting for alignment between trend and ATR zones may reduce trade frequency.
Final Thoughts
The combined use of the ATR Levels Forex Indicator and the BSI Trend Indicator creates a robust strategy that blends volatility-based support/resistance with clear trend direction.
Traders can improve entry timing and risk management by waiting for confirmation from both tools.
Patience and proper money management are essential to maximize the strategy’s effectiveness.
Pros and Cons
Pros
- Identifies dynamic support and resistance levels based on market volatility.
- Non-repainting indicator provides reliable signals for trade management.
- Works well across all timeframes and currency pairs.
- Helps traders set better stop loss and take profit levels.
- Easy to use and integrates smoothly with other trading strategies.
Cons
- Best used in trending markets; less effective during sideways or low volatility periods.
- Should be combined with other indicators or price action for confirmation.
- It may produce false signals if used as a standalone indicator.
- Customization might be needed to optimize settings for different pairs or timeframes.
Indicator Specifications
| Indicator Name | ATR Levels Indicator |
|---|---|
| Platform | MetaTrader 4 (MT4) |
| Timeframes | Works for any timeframe |
| Markets | Forex |
| Inputs | ATR period, color settings & style |
| Indicator Type | ATR |
| Repaint | No |
Final Words
The ATR Levels Indicator is a valuable tool for traders seeking to identify key price levels based on market volatility.
By combining this indicator with a reliable trend-following strategy, traders can enhance their decision-making process and improve trade outcomes.
