Gideons ATR Indicator
MT4Gideons ATR Indicator For MT4 smooth ATR values using a slow and fast one to provide potential market volatility signaling buy or sell forex trade
Description
The Gideons ATR indicator for MT4 combines a slow and fast ATR – Average True Range indicator to provide a smooth single ATR value. Since the ATR measures the volatility, it helps forex traders in technical analysis and to formulate volatility based trading strategies. As higher volatility indicates potential for an increased price movement, it acts as a leading indicator. So, forex traders can enter the markets while the volatility increases.
The indicator works well for new and advanced forex traders and works well in all intraday price charts as well as the daily, weekly and monthly price charts. Moreover, the indicator re calculates based on the price changes so traders should consider them while trading.
Gideons ATR Indicator For MT4 Trading Signals
The indicator plots a single grey line in a separate indicator window. The indicator does not provide trading signals but should be used in confluence with other indicators. Higher volatility potentially signals a market movement, so traders should enter the markets if the ATR values are expected to move higher.
If the price is moving in an upward direction and the ATR values are pointing to move higher it indicates a potential upward move. So, traders should enter the market with a buy trade and place a stop loss below the previous swing low.
Traders should open sell positions, if the price is moving downwards. Similarly, the ATR values should be looking to go higher and expect increase volatility. This indicator does not provide a profit target. So traders should exit once the volatility reduces and signals the potential end of a strong move.
Conclusion
In summary, the Gideons ATR indicator for MT4 is an improved version of the classic ATR indicator to detect volatility.
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