Daily ATR Indicator for MT5

Volatility is a vital factor in the Forex market that every trader must check before placing any trade. This is because traders always expect to take advantage of a highly volatile market. The best way to measure market volatility is to use the Daily ATR indicator. The indicator for MT5 measures the daily volatility of any Forex asset. This indicator builds two levels per day. The ADR High levels indicate where the highest daily ATR is. In contrast, ADR Low levels indicate the lowest daily ATR. The chart above shows the Daily ATR indicator on the GBP/USD H1 chart. Daily ATR Indicator For MT5 Trading Setup From the chart above, the ADR High level (1.22027) is the current upper ATR level. Furthermore, the ADR Low level (1.20648) is the current lower daily ATR level. The prices between these two levels shows the trading range of forex assets per day. A higher volatility of prices occurs when a forex asset moves past any of the ATR levels. A break below the yellow levels means the selling pressure is high for the day. Conversely, a break above the red levels implies that the buying pressure is high for the day. The Daily ATR indicator for MT5 is specially suitable for intraday trading. This is because day traders open and close their trading positions throughout the day. This way they can place entries, exits and stop losses using the indicator levels. Most traders wait for the price to break above the ATR levels before entering any trades. Buy entries are usually placed when the price breaks the upper ATR level. Many long traders may also exit buy trades at the top level. For long trades, stop loss is usually placed at lower levels. In contrast, sell entries are most often placed when the price falls below a lower level. Take profit for short positions can be placed at the lo level. Also, stop loss for short positions can be placed at the upper level. Conclusion The Daily Average True Range (ATR) indicator is a powerful tool for determining the daily trading range. Many day traders specifically use this indicator to enter and exit trades. The indicator should not be used solely trading strategy. Thus, the indicator is best used with price action and other technical indicators such.