The strength of the Up Down indicator is in the way it gives its signals without crowding the screen with confusing colors. Moreso, its signals, when used rightly, have earned traders more pips than it has lost them.

So, how do you use it?

How To Trade Using The Up Down Indicator

Trading this Metatrader Indicator is pretty simple. Here’s how to go about making trades using this indicator:

Trade Entries Strategy

Keep your eyes on the dots. What you’re looking for is when the dots form a step in either the upward or downward direction.

So, for a bullish trade, you wait for the completion of the first bar of green dots after the red dots. This usually happens are the end of trends. A bar often forms after a minimum of four consecutive green dots. But depending on the trend and the currency pair, over four dots could make up a bar. Once that bar is fully formed, and the following dot forms a step above the previous bar, that is your entry. Take it.

The same thing goes for bearish trades, but vice versa. You’re to sell once the red dots take a step downwards from the first bar.

Trade Exit Strategy

Exiting a trade is just as easy. If you were to rely on this indicator alone, you would wait for the first bar of dots in the opposite direction to your trade. So, if you were previously on an uptrend, you’re looking for the first bar of red dots to close your trade. And if you’re riding the bearish trend, the first bar of green dots is a sign to exit the trade.

However, there are many other strategies to exit a trade. For instance, you could use technical price action tools, such as support and resistance zones (and their breakouts), channels, etc. You can also exit when the price returns to your trend lines and you’re not sure where the price would go from there.

Conclusion

The Up Down indicator is best for novice traders because of the simplicity with which it gives its signals.

The post Up Down Indicator appeared first on indicatorspot.com.

The Ultimate Pro Scalper is a trend trading indicator that helps you spot the starting and ending points of trends while also predicting the strength of the trend. It uses green and red diamonds as trade signals and an info box at the top right corner to tell you how strong the trend is.

Although its name suggests that you should use it for scalping, you can also gain a reasonable amount of success when using it with other trading styles.

How To Trade Using The Ultimate Pro Scalper Indicator

The Ultimate Pro Scalper is easy to trade. Here’s how to go about it:

Trade Entry Strategy

The Ultimate Pro Scalper makes trade entries relatively easy. The green diamond signifies a buy, while the red diamond signifies a sell. It’s that easy.

However, there are some nuances you might need to take note of when making your trades. For instance, it is important to consider the “Trend Power” reading of the indicator before making the trade. If the trend power is low, this could mean that the trend is weak.

So, if you get a buy signal with a low trend power, it is best to steer clear of buying. Similarly, if you get a sell signal with a low trend power, consider holding until you have something more conclusive.

The best thing to do is to find the best strategies to open your buy and sell positions while still fitting into your trading plan.

Trade Exit Strategy

There are many ways to exit trades when using this Metatrader indicator. One of them is to exit a trade when the signal tells you to. So, in a bullish trend, exit when the red diamond appears. And in a bearish trend, exit when the green diamond shows up.

Another way to exit trades is when you notice a significant reduction of the Trend Power. It is a suggestion that the trend is weakening. And this method is faster than the first method, as it helps you get out of trends before they are at their weakest. However, the downside to this exit method is that it may get you out of trades prematurely.

Of course, you can also exit trades using other trade exit strategies you know. For instance, you may exit the trade if your risk-reward ratio has been justified. You can also exit at support and resistance zones (and their breakouts). You can also exit when the price returns to your trend lines and you’re not sure where the market would go from there.

Conclusion

The Ultimate Pro Scalper is best for all traders, regardless of skill or style.

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There are many candlestick patterns in forex. It’s one thing to recognize them in theory and textbooks. But they don’t always look as perfect on live forex charts. If only there was an indicator that helps to identify candlestick patterns on the live charts.

There is. It is the Pattern Recognition Master indicator.

Pattern Recognition Master Indicator

The pattern recognition master indicator simply tells you what candlestick patterns are on your charts in real-time. It displays these details by placing some letters on new candlestick patterns as they form. And on the top left corner of the chart, the indicator shows what each letter stands for. For instance, S_E stands for a bearish engulfing candlestick pattern on the indicator and L_E stands for a bullish engulfing candlestick pattern.

How Do you Use Indicator?

The pattern recognition master indicator displays candlestick patterns on the forex chart. So, the best way to use the indicator is by knowing how to use the individual candlestick patterns in your forex trading.

It is also important that a trader does not use this indicator in isolation. But instead, combine the indicator with other forex market structures and indicators to get a better idea of the direction of a currency pair. For instance, a hammer candlestick pattern, which often signifies an uptrend, may appear in a major downtrend. Entering a buy order in a bearish market trend is very risky, as you would be trading against the trend.

So, to enter a bullish trade after a bullish engulfing candlestick, a trader has to first confirm that the market is on an uptrend. For an ideal situation, other forex trading tools, such as indicators and market structures like resistances and supports, have to confirm the trade. However, this rarely happens in forex, so you have to follow your own trading rules to enter your trades.

Who is the Pattern Recognition Master Indicator Best For?

Anyone who uses forex candlestick patterns in their trading would find the pattern recognition indicator useful. The good thing about forex candlestick patterns is that anyone can trade them, irrespective of their trading style or the timeframe they choose. And by extension, any forex trader can use the forex candlestick patterns.

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The Supply and Demand Zones Indicator for MT4

The supply and demand zone indicator accurately draws the supply and demand zones of a currency pair on the chart. You will find these zones in two colors on your MT4. One is white, which signifies zones that have been retouched recently. The other zone is painted grey, and it signifies zones that are yet to be touched. And somewhere in the settings, a trader can tweak the indicator to make it display the Fibonacci retracement between zones.

How to Use the Supply and Demand Zones Indicator

The supply and demand zone indicator is quite easy to use. Since supply and demand zones are basically support and resistance zones, you can use this indicator in much the same way.

Price often hits the supply zone and bounces back down. And when it hits the demand zone, it bounces up. So, a trader could take advantage of this predictability and make trades off of it. The rule of trading supply and demand is to sell at supply and buy at demand.

In addition, only trust the retouched zones (the white zones). The white-colored zone is reliable, as the price has tested it at least twice. The grey colored zones are good for observing potential reliable zones.

Who is the Supply and Demand Zone Indicator Best for?

The supply and demand zone indicator is best for all forex traders. Beginner traders who are having trouble recognizing support and resistance levels may find it more useful than those who don’t.

Pro forex traders who draw their zones differently from how they appear on this indicator may find it less useful to them. However, the accuracy of this indicator can’t be denied, and so it could be a useful tool to anyone who uses the supply and demand in their trading.

And once again a little about the zones…

Construction:

Demand Zones: Formed where the price sharply rises, indicating strong buying interest. When revisited, these zones often trigger buying activity.
Supply Zones: Created where the price drops sharply, signaling strong selling pressure. Sellers may become active when the price returns to these zones.

Types:

Fresh Zones: Recently formed and untested, considered strong due to unfilled orders.
Tested Zones: Have been tested by price; still relevant but may weaken over time.

Differences from Support and Resistance Levels

Supply and Demand Zones: Cover broader price ranges, based on volume and market movement, making them more significant long-term.
Support and Resistance Levels: Specific price points, often determined by historical touches, better suited for short-term trading.

Pros and Cons

Pros:

Accuracy: More reliable entry/exit points based on real market activity.
Longevity: Remain relevant over time, aiding long-term trade planning.

Cons:

Complexity: Harder to identify without indicators.
Uncertainty: Broader zones can create ambiguity in entry timing.

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The Volatility quality zero line is both a trend trading indicator and an indicator for volatility. It suggests the trend of the price with two colors, red and green. The green line suggests that the market is in an uptrend, while the red line suggests a downtrend. And as for its volatility duties, the farther the line is from the zero line is how much volatility there is in the market.

The indicator is a variation of the Volatility quality indicator, which was invented by Thomas Stridsman. But the Volatility quality zero line indicator differs from its source indicator in how less sensitive it is. It does not give as many signals as the source indicator, and as a result, it is more resistant to false breakouts. It uses the Open High Low Close values of a Weighted Moving Average to derive its values. On the downside, however, the market volatility indicator can be slow to react to price movements.

How to Trade Using the VQ ZeroLine Indicator

The way to trade forex using the indicator is to follow the signals. Go long when the line turns from red to green …

… and go short when the line turns from green to red.

These signals coincide with when the line crosses the zero line.

Trade Management with the Indicator

Trade entries with the Volatility quality zero line indicator is just one part of the equation. The other part is knowing how to set stop losses and take profit with the indicator.

Take profit

To set take profit levels using the indicator, exit trades at the beginning of new signals. For instance, when the volatility trading indicator goes from green to red, exit all long positions. And when the indicator goes from red to green, exit all short positions.

Stop loss

A way to set your stop loss level is to note the most recent high or low before the Volatility quality zero line indicator gives a signal. For instance, note the most recent high after the indicator changes from bullish to bearish and place your stop loss above it. This method is based on the idea that for a downtrend to occur in a financial market, there has to be lower lows and lower highs. And for an uptrend, there has to be higher highs and higher lows.

You can also use this method of setting your stop loss to filter out your trades. If you find that the most recent high or low is too far from where the new signal is, that might be a sign to not take that trade. The reason for this is that the market might have run out of momentum before you get enough pips out of the trade.

Who is the Volatility Indicator Best for?

The Volatility quality zero line Indicator indicator is best for any forex trader. It is easy to use and requires no technical knowledge before you apply it to your trading.

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The Currency Power Meter Indicator

The currency power meter is an indicator that measures the individual strengths of currencies. With this knowledge, a trader can leverage the weakness and strengths of currencies to choose pairs that have the potential to be lucrative. You may also call it a currency strength indicator.

Many factors affect the strength of currencies. Some include interest rates, economies, and news. With the currency strength meter indicator, however, a trader can see the strengths of these indicators without having to do any extra computing.

This strength determining indicator uses histograms to portray the strength of each currency. Every currency has a wide and a narrow histogram in front of it. The wide histogram depicts the currency strength on the daily chart while the narrow histogram depicts the currency strength on any other time frame you are on.

How to Use the Currency Power Meter Indicator in Your Trading

Using the currency strength indicator is simple. Load the indicator and compare the strengths of currencies. Pick a strong and a weak one. Then open the currency pair chart to look for trade entries using other forex analysis tools, such as other indicators and market structures.

For instance, the AUD has a strength of 7.5 on the daily time frame, and the EUR has 2.7. So you are looking to trade the EURAUD in the daily or 4-hour timeframe. Because the AUD has higher strength and the EUR has a low strength, you look for sell signal on the currency pair.

So, you go to the chart, do your analysis, and be sure that your analysis agrees that you buy. Otherwise, disregard the information on the currency power meter indicator.

The Wrong Way to Use the indicator in Your Trading

Doing any of these is a misuse of the indicator:

• The currency strength indicator is not an entry or exit indicator. When you see that a currency is strong at the moment, you don’t just pair it up with a weak currency and make trades without proper analysis.
• If you are a scalper or you trade the smaller time frames, do not rely heavily on this indicator. The reason is that high-impact news is more likely to cause temporary hyper-volatility on the lower timeframes. And this hypersensitivity could affect the output calculation of the indicator.

Who is The Currency Power Meter Indicator Best for?

The currency power meter indicator is best for both beginner and expert forex traders because it has a simple interface and it is easy to use. Also, day traders and swing traders would find the indicator useful.

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Its indicator is one of the most reliable reversal indicators. It appears on your charts in the form of yellow dots coated in red and blue rings. The yellow dot in red rings appears at market tops to signify a reversal to downtrends. Blue rings around yellow dots suggest a reversal to the uptrend.

How to use Forex Reversal Indicator in your trading

The first impulse of many forex traders might be to avoid this trend reversal indicator because it tends to repaint signals. However, there are ways to use the indicator without having much trouble when it repaints.

Combining our indicator with other trend trading indicators

Let’s use the FXSSI Trix Crossover indicator as our other trend trading indicator, for instance. Open it alongside the trend reversal indicator on your MT4. All you then need to do is to trade in the direction of the trend. If our reversal indicator says the market has reversed to an uptrend, use the Trix Crossover to make all uptrend trades as long as the trend remains. And when the  indicator changes its bias to a downtrend, use the Trix Crossover to scout for downtrend entries alone.

Trading the signals of the forex reversal indicator

This is a riskier method to use this indicator since it repaints its signals. A way around this is to only use the signals in confluence with signals from other technical analysis tools. The technical analysis tools could be simple resistance and support levels, indicators, price action, or more. When more technical analysis tools confirm the signals of the forex reversal indicator, the signals have more credibility.

Who is The Forex Reversal Indicator Best For?

Indicator is best for expert and intermediate forex traders. These traders may already have some experience in combining different strategies and tools to get trading signals. Also, traders, such as swing and position traders, who trade on higher timeframes might find more reliable signals using this trend reversal indicator. Scalpers should steer clear of this indicator.

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Contents:

1. Why to use Price Action
2. PriceActionScaner indicator and its features

1. Why to use Price Action Scaner

Price Action is the method of chart analysis that uses only primary data – market price – to make trading decisions. This approach suggests applying price patterns as basic tools.
The inverse method of analyzing charts comes down to using technical analysis indicators, as well as trading robots and Expert Advisors (EA). They process data on prices and volumes and generate trading signals based on this.

Both these approaches are effective enough and can be useful for Forex trading. However, while MT4 has a great number of indicators from the second group, there are virtually no Price Action tools in the MT4.

2. Price Action Scaner indicator and its features

PriceActionScaner is a free MT4 indicator that analyzes the chart of the selected asset and automatically plots certain price patterns (setups) on it.

PriceActionScaner draws price patterns on all timeframes of the MT4 terminal. When using it, the priority of timeframes should be kept in mind. The higher the timeframe, the less market noise will be taken into account and thereby the more accurate the signals will be.

The indicator includes a total of 7 Price Action patterns:

• DBHLC & DBLHC pattern (Double Bar Lows Higher Close & Double Bar Highs Lower Close) or bullish/bearish setups.

It’s made up of two candlesticks having the same lows/highs of shadows, but a higher/lower closing price of the second candlestick.

As a rule, bullish and bearish setups occur during a fairly strong trend and indicate its continuation.

• TBH&TBL (Two Bars High & Two Bars Low) pattern or two bars having the same High/Low price.

It occurs when two candlesticks having the same highs/lows of shadows appear on the chart. This pattern can be seen at the price extremes, when one trend is replaced by another.

In this case, the pattern indicates that buyers don’t have the strength needed to further boost their activity.

• RAIL’S pattern.

It usually gives signals during a strong trend. Depending on its position on the chart, it acts both as trend continuation or trend completion pattern.
It’s essential that the candlesticks are long and have short shadows. Such a configuration of candlesticks indicates the high activity of Forex market participants. If this is the case, trading signals can be more reliable.

• OVB pattern (Bullish pattern & Bearish pattern) or engulfing.

The template is made up of two candlesticks. The second candlestick has a lower opening price and a higher closing price (for Buy trend; the opposite is true for Sell trend) relatively to the first one. This is why the pattern is called engulfing – visually, the second candlestick’s body completely engulfs that of the first one (not allowing for its shadows).

• PPR (Reversal Pivot Point) pattern or reversal point.

This formation consists of three candlesticks. Usually, the pattern indicates potential trend reversal points rather than its continuation.
In this case, the third candlestick doesn’t close below the low or above the high of the second candlestick, but hits a new extreme.

• Pin-Bar pattern or pin-bar.

A pin bar looks like a candlestick with a long shadow and its opening and closing prices are close to each other. This pattern often acts as a trend reversal signal. Due to its easy use and efficiency, it’s popular enough among Forex market participants.

• WRB (Wide Range Bar) pattern or widening bar.

WRB highlights two bullish/bearish candlesticks simultaneously. Most often, the pattern forms when the retracement move has completed and signals the resumption of the major trend.

As you know, market points are more reliable when several analysis tools suggest opening a position. Thus, the price activity indicator will be more helpful when used either with other indicators or the primary trading system.

When you use the indicator for the first time, you’ll need to spend some time customizing its parameters.

The PriceAction_Scaner indicator can eventually be a useful complement to your Forex trading system.

The indicator draws formations on all timeframes that makes it more one-size-fits-all. So, no matter which approach you practice in trading (swing trading, scalping, intraday trading or long-term trading), the chart will always display trading situations with promise of profits.

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What Is the Lucky Reversal Indicator?

As the name suggests, the Lucky Reversal Indicator helps you spot when a trend shifts—whether it’s turning from an uptrend to a downtrend or vice versa. It signals these shifts with blue and red arrows, each followed by wavy horizontal lines. A blue arrow marks the start of an uptrend, while a red arrow indicates the beginning of a downtrend.

There’s also a subtle feature you might overlook at first glance: a white square that appears when the indicator suggests a temporary or potential reversal.

The Major Flaw of the Lucky Indicator

Unlike many other trend reversal indicators, the Lucky Reversal Indicator is a lagging tool. This means it doesn’t help much if you’re trying to catch the beginning of a reversal breakout.

Many traders have experienced frustration when attempting to use it this way. If you backtest the indicator, you’ll see that the bullish and bearish signals often show up right at the lowest or highest pivot points of significant trend reversals. It might seem like the price reverses just as the arrow appears.

However, when you test the indicator in a live market, you’ll find that the bullish or bearish signals only show up after the market has already completed a reversal. The reversal arrow appears on the chart only once the reversal is confirmed, highlighting the indicator’s lagging nature.

The Major Strength of the Lucky Indicator

The very thing that makes the Lucky Reversal Indicator weak also makes it strong. Because it lags, it’s not ideal for catching reversals, but it’s excellent for confirming trades in a newly emerging trend. For example, you can confidently trade the uptrend that follows after the market completes its reversal from a downtrend.

The Lucky Reversal Indicator Trading Strategies

The best way to use the Lucky Reversal Indicator is by incorporating it into a broader trading system, combining it with other tools. These could be indicators, or they could be elements of market structure, like support and resistance levels, candlestick patterns, or chart patterns.

Here’s an example of how to do that using the Moving Average indicator.

1. Combining the Indicator with the Moving Average Indicator

First, add the Lucky Indicator and two Moving Averages to your chart. Keep one Moving Average at its default setting, and set the other to a 20-period Moving Average, giving it a different color to distinguish it. The default Moving Average will serve as the fast MA, and the 20 MA will act as the slow MA.

Now, wait for the Lucky Indicator to give a buy or sell signal. Remember, because this indicator lags, you’re not looking to trade the initial signal. Instead, you’ll look for entry opportunities in the direction of the trend that the Lucky Reversal Indicator confirms. This is where the two Moving Averages come in.

When the indicator signals an uptrend, buy only when the fast MA crosses above the slow MA. Don’t sell until the Lucky Reversal Indicator changes from a blue arrow to a red arrow. Similarly, when the indicator signals a downtrend, sell only when the fast MA crosses below the slow MA.

This strategy doesn’t require you to use the specific Moving Average periods mentioned here; you can adjust them or even use different indicators. The goal is to find a best trend-following indicator that complements the Lucky Reversal Indicator.

Having said that, there is still another way to trade the signals of the Lucky indicator. And this brings us to the second trading strategy.

2. Trading the Lucky Reversal Indicator Signals

Often, the Lucky Indicator displays a white square when a reversal is likely. From this point, the price may continue moving, but the white square stays in place. When a trend reversal is confirmed, the white square changes to an uptrend or downtrend signal. Enter your trade at the close of the candle where the white square changes to a buy or sell signal.

For instance, place a buy trade when the Lucky Indicator confirms an uptrend, and place a sell trade when it confirms a downtrend.

Trade Management

For both of these strategies, it’s best to set price targets for your take profits. Don’t wait for an opposing signal from the indicators before you exit the trade.

When setting your stop losses, never risk more than you can afford to lose—typically, no more than 2% of your capital per trade. Keep this in mind and use whichever stop loss method you’re comfortable with.

A good thing about the Lucky Indicator is that once it draws its wavy lines, the price rarely crosses back over. You might use this to set your stop losses, though it won’t always provide the best risk-to-reward ratios.

Lucky Reversal FAQ

1. Who Is the Lucky Reversal Indicator Best For?

The Lucky Reversal Indicator is ideal for intermediate and professional forex traders. Beginners who understand lagging indicators and know how to trade them might also find value in using it but should proceed with caution. To get the most out of this indicator, it’s important first to have a good grasp of how to identify forex trend reversals.

2. What time frame works best with the Lucky Reversal Indicator?

The Lucky Reversal Indicator tends to work best on higher time frames like H1, H4, and D1. These time frames reduce market noise and provide more reliable signals. You can use it on lower time frames for shorter trades, but be mindful that the indicator’s lag might be more noticeable.

3. Why does the Lucky Reversal Indicator lag, and how does this affect trading?

The indicator is designed to confirm reversals after they’ve begun, which helps avoid false signals. While this means you might miss the early part of a trend, it also protects you from entering trades too soon.

4. Can the Lucky Reversal Indicator be used alone?

While it’s possible, it’s better to pair the Lucky Reversal Indicator with other tools like Moving Averages or RSI. This combination improves accuracy and helps you make more informed decisions.

5. What does the white square on the chart mean?

The white square signals a potential or temporary reversal. If it changes to a blue or red arrow, the reversal is confirmed, and you can consider trading in the new trend’s direction.

6. What if the market moves against the indicator’s signal?

Always have a risk management plan. Set stop losses to protect your capital, and be ready to exit if the market changes unexpectedly. No indicator is foolproof, so caution is key.

7. Can this indicator be used in volatile markets?

It can, but be careful. Volatile markets can cause more erratic signals, so it’s important to combine the indicator with tools that help manage volatility.

9. What are common mistakes to avoid?

Avoid relying solely on the Lucky Reversal Indicator without confirming signals, ignoring the market context, or using it in highly volatile conditions without additional analysis. Integrating it into a broader strategy will give you better results.

Bottom Line

In summary, the Lucky Reversal Indicator for MT4 is a helpful tool for spotting and confirming trend changes. With its easy-to-read signals and compatibility with any trading strategy, it’s great for both new and experienced traders. Use it to improve your trade entries and exits and get an advantage in the forex market. Download it now to boost your trading results.

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The indicator we will look at is a simplified analogue of the ATR indicator, which is already installed by default in the MT4 Terminal. But it has a number of advantages, which we will tell in the article.

The Average True Range Value Indicator On MT4

The average true range (ATR) indicator determines the volatility of the market. In other words, it portrays the average size of price movements for a given asset over a period. When you use the average true range on MT4, it displays as a line that goes up and down the indicator window. The higher the ATR value, the more volatile the market is. And the lower the ATR value, the less volume there is in the market.

A mistake many traders make is that they try to trade trends with the ATR. Unfortunately, they might as well be trying to fit square pegs in round holes. The ATR indicator does not tell the trend of the market. There are even times, as in the image below, when the market is trending in one direction but the ATR slopes in the opposite direction.

If you are then wondering what the ATR is used for, here are some common uses of the ATR indicator.

• A trader can use the ATR value indicator to determine the best time to enter trades. The ATR can help you determine if there is enough volume in the market for you to trade. It also keeps you out of dead or inactive markets.
• You can also use the ATR indicator to determine stop loss positions.
• There are also ways to use the ATR as an exit indicator.

How Is Indicator Calculated?

As the name implies, the average true range is the average of the price range values of an asset over a period. But there are three different ways to calculate the true range of an asset.

• Subtract the previous low from the current high
• Subtract the previous close from the current low
• Subtract the current low from the current high

The ATR calculates those true ranges and uses the greatest among them as the true range for that period. Note that the ATR does not take the positivity or negativity of the number into consideration. Negative 56 (-56) is the same as positive 56 (+56) as far as the volume telling indicator is concerned.

Now that the formula for the true range for each period is known, the ATR just averages these values over a given period. The default ATR period on Metatrader 4 trading platform, for example, is 14. So, the ATR calculates the true ranges over the last 14 candlesticks and uses the values to construct a continuous line.

How To Trade With The Average True Range Indicator?

This is the part that interests many traders, and for the right reasons. What’s most important is how to implement the ATR indicator in your trading.

Here are some average true range indicator trading strategies:

●      Explosive Breakouts

There are times when the market is very volatile, and other times when it isn’t. You can use this ATR trading strategy to take advantage of breakouts from low to volatility periods.

First, you pull up your ATR indicator on the weekly chart and wait for the indicator to hit multi-year lows. In other words, you wait till the market is at its least volatile and the ATR line is closest to the floor. Then you locate the support and resistance levels within this period on your charts and wait for a breakout to occur.

You can rely on the FXSSI support and resistance indicator to help you locate the major support and resistance levels on your chart.

●      Setting stop losses

Have you ever watched the market come all the way down to hit your stop loss before immediately bouncing back in the direction you initially thought it would go? This ATR value indicator trading strategy can come in handy to prevent such happenings in the future.

Check the current value of the ATR as you enter a trade. Multiply this current value with a multiple. The most commonly used multiples are 1.5, 2, and 3. Next, you add (for a sell trade) or subtract (for a buy trade) the calculated value to the current price to make your stop loss.

You can also adapt this trading strategy to help you get the best out of trending markets. At the end of each period or candlestick, you trail your stop loss by the calculated value.

By the way, you can learn how to trade without a stop loss if you want to completely eradicate the stop loss from your trading.

●      Take Profits

Since the ATR tells the average price movement for an asset for a preset number of periods, you can set your take profits with this knowledge.

For example, if the GBPNZD daily chart has a current ATR value of 140, this tells you that the currency pair moves about 140 pips on average. So, you can place your take profit anywhere near 140 pips away from your entry price. It always works better to combine this strategy with other market structures, such as swing highs and lows, support and resistance levels, and others.

Of course, these are only a few ATR trading strategies. You could come up with better ways to use it in your own trading on your MT4.

Who Is Indicator Best For?

The ATR is best for forex traders of all experience levels since it doesn’t tell trends. Also, the indicator can fit into the trading systems of anyone, irrespective of their trading style.

As we can see, the indicator is no worse than the standard, but even better. Because it saves space for the workspace for objective analysis of the price chart.

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