Skip to content Skip to footer

Metatrader 4: How to use the Forex Indicator ATR

On our last tip, we showed you How to Use the Forex Indicator RSI on Metatrader 4. Today, we will focus on the use of the Forex Indicator ATR, part of the indicators available on MT4.  This indicator has been used as a component of numerous other indicators and trading systems ever since it was introduced by Welles Wilder in his book “New concepts in technical trading systems”

True Range is the greatest of the following three values:

  • difference between the current maximum and minimum (high and low);
  • difference between the previous closing price and the current maximum;
  • difference between the previous closing price and the current minimum.

The Technical Analysis Forex Indicator, ATR (Average True Range), allows us to calcúlate the ADR (Average Daily Range) or daily Pips average in a pair.

How to add the Forex Indicator ATR on Metatrader 4:

ATR indicator on MetaTrader 4

The first step is to go to the ‘Navigator‘ window and locate the ‘Indicators‘ option.

Metatrader 4 adding the ATR indicator

Once there We expand Indicators > Oscillators > and click Average True Range. 

ATR indicator on MT4

The parameters for this indicator are:

Setting up parameters for ATR indicator on MT4

You can also set up levels:

Setting up the levels on the ATR indicator on Metatrader 4

As well as Scale:

Setting up the scale on the ATR indicator on MetaTrader 4

In order to calculate the pips movement for the day (that is, the difference between the maximum and the minimum value), we use 1 period as the value.

To know what the ADR of a pair allows us to understand its volatility and, that way, could define our Take Profit and set the Stop Loss.

Try a free DEMO account from Tradeview, or open a LIVE account and begin your trading journey with us today.

Show CommentsClose Comments

Leave a comment


Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.

TVM Global Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

Tradeview Financial Markets S.A.C.

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.