The ATR (Average True Range) Trailing Stop indicator is a powerful and dynamic tool that can help traders manage risk and optimize their trading strategies. By effectively using this indicator, traders can better time their entries and exits, while protecting their profits and minimizing losses.
Mastering the art of placing a stop loss at the best prices can make a trader really successful. There are many ways to find the right values. To my mind, the ATR Trailing Stop Indicator is the best indicator that uses the Average True Range to calculate the volatility and provides the forex traders with the best possible trailing stop loss.
In this article, we will explore how to install and use the ATR Trailing Stop indicator.
Indicator Description
The ATR Trailing Stop indicator is a combination of the ATR (Average True Range) and a trailing stop. The Average True Range is a volatility measurement that helps traders understand the average range of price movements over a specified period. By combining this information with a trailing stop, traders can dynamically adjust their stop loss levels based on market volatility. This can help them avoid getting stopped out too early due to minor market fluctuations while still protecting their profits.
ATR Trailing Stop Indicator Installation
1. Unzip the file you’ve downloaded.
2. Find the file that is called “atr-trailing-stop.ex4″/”Mod ATR Trailing Stop MT5 Indicator.ex5″ and copy it.
3. Open your MT4/MT5.
4. Go to “File – Open Data Folder – MQL4/MQL5”.
5. Paste the file into the “Indicators” folder in MQL4 /MQL5 .
6. Restart your MT4/MT5.
After the installation, your trading chart will look like this:
Basic Trading Instructions
Traders use the ATR Trailing Stop indicator to find entry points and exit points as the ATR is the best calculator of volatility. Forex traders can open a BUY order once the indicator changes to BLUE color. Oppositely, they can place a SELL order as the indicator changes to RED color. However, it is recommended to combine the signals with other technical indicators and price action to confirm the entry points.
Forex traders can use the Average True Range to identify the trend and follow the trend until the opposite trend emerges.
The above AUD/USD, M30 chart shows the ATR Trailing Stop Indicator in action. The indicator displays the trailing stop levels above the current price in RED color for SELL positions. On the other hand, the indicator places the stop levels below the price in BLUE color for BUY positions.
My Conclusion on ATR Trailing Stop Indicator
The ATR Trailing Stop indicator is an essential tool for all types of forex traders. New forex traders will highly appreciate this indicator as it provides a snapshot of market volatility. Also, the ATR Trailing Stop Indicator provides them with the best stop loss points. Experienced forex traders can use this indicator to identify trailing stops, trend direction, entry and exit points, combine them with other technical strategies and use the multiplier to find the best indicator settings.
P.S. Have problems with installation? Email me at olivermurphy@altraforex.com or support@altraforex.com
I would love to help!
P.P.S. Check out software by Altra Forex Group here
thanks a lot for ATR free indicator