The ATR Signals Metatrader 4 forex indicator is based on the ATR (average true range) indicator and works together with two fast-moving average indicators.
The indicator draws three signal lines in a separate window below the main activity chart.
A green, blue and red line.
All signal lines combined all together creates an easy to trade forex system that can be deployed on any currency pair and any timeframe of your choice.
It is a typical crossover forex system but now with 3 signal lines.
Use it for scalping (M1, M5), day trading (M5, M15) or for short-term swing trades on M15, M30 and H1 trading charts.
The default ATR Signals indicator settings can be modified directly from the indicator’s inputs tab. Experiment with its settings.
Free Download
Download the “sfx-ma-on-atr-indicator.ex4” MT4 indicator
Indicator Chart (EUR/USD M15)
The EUR/USD M15 chart below displays the ATR Signals forex indicator in action.
Basic Trading Signals
Signals from the ATR Signals forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade position when the blue signal line is aligned above the red and green one AND the red signal line is aligned above the green line.
Sell Signal: Open sell trade position when the blue signal line is aligned below the red and green one AND the red signal line is aligned below the green line.
Trade Exit: Close the open buy/sell forex position when an opposite signal occurs, or use your own method of trade exit.
ATR Signals and Forex Trend Filter Scalping Strategy
This MT4 scalping strategy combines the ATR Signals Metatrader 4 Forex Indicator with the Forex Trend Filter Indicator.
The ATR Signals indicator provides precise buy and sell entries based on the alignment of blue, red, and green signal lines.
The Forex Trend Filter confirms the trend with a blue histogram for buy trends and a red histogram for sell trends.
Combining both ensures trades are entered in the direction of the overall trend with additional confirmation from volatility signals.
This strategy works best on lower time frames such as M1, M5, and M15, making it ideal for scalpers seeking short-term, high-probability trades.
Buy Entry Rules
- Confirm that the Forex Trend Filter shows a blue histogram, indicating a buy trend.
- Enter a buy trade when the ATR Signals indicator shows the blue line above the red and green lines, and the red line is above the green line.
- Set stop loss just below the recent swing low for risk management.
- Take profit can be set according to your preferred scalping target, typically 7-25 pips for lower time frames.
Sell Entry Rules
- Confirm that the Forex Trend Filter shows a red histogram, indicating a sell trend.
- Enter a sell trade when the ATR Signals indicator shows the blue line below the red and green lines, and the red line is below the green line.
- Set stop loss just above the recent swing high for risk management.
- Take profit can be set according to your preferred scalping target, typically 7-25 pips for lower time frames.
Advantages
- Dual confirmation: combines trend direction and volatility signals for higher-probability trades.
- Clear visual trading signals from both indicators make it easy to spot entry and exit points quickly.
- Short-term targets allow fast scalping opportunities and frequent profit potential.
- Helps reduce counter-trend trades, improving overall trade success rate.
- Flexible for different lower time frames (M1, M5, M15) depending on trader preference.
Drawbacks
- Requires constant attention due to the fast nature of scalping trades.
- Limited profit potential per trade because it is designed for short-term scalping only.
- Traders need discipline to exit quickly within the pip target range to avoid giving back profits.
Case Study 1 (Buy Trade)
On EURUSD M5, the Forex Trend Filter displayed a blue histogram, confirming a buy trend.
The ATR Signals indicator showed the blue line above the red and green lines, and the red line above the green line.
A buy trade was entered at 1.1570. Price moved upward to reach 1.1582 (+12 pips), hitting the target within minutes.
Case Study 2 (Sell Trade)
On GBPUSD M5, the Forex Trend Filter showed a red histogram, confirming a sell trend.
The ATR Signals indicator displayed the blue line below the red and green lines, with the red line below the green line.
A sell trade was entered at 1.2790.
Price dropped to 1.2775 (+15 pips), reaching the target quickly, showing an effective short position using trend and ATR signal alignment.
Strategy Tips
- Only take trades in the direction confirmed by the Forex Trend Filter: buy on the blue histogram, sell on the red histogram.
- Use ATR Signals for precise entry timing to capture short-term scalping opportunities.
- Keep stop losses tight to manage risk on lower time frames.
- Focus on high liquidity currency pairs for best execution.
- Practice on a demo account to master quick entries and exits using both indicators.
- Consider partial exits if price moves quickly to protect profits while letting trades run.
Download Now
Download the “sfx-ma-on-atr-indicator.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (ATR period, MA fast period, MA slow period) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Trend
