ATR Indicator

The average true range (ATR) indicator is developed by J.Welles Wilder and it is used to measure the volatility of a currency pair. Unlike the other forex indicators we have went through so far, the average true range (ATR) indicator does not provide any indication of the price movement.

There are a total of 3 different ways you can calculate the average true range (ATR) of a currency pair.
 Recent High minus the Recent Low
 Recent High minus the previous Close
 Recent Low minus the previous Close

However the value that you will use as the true range will depend on which of them are larger. With your trading platform, there is usually no need to calculate these values yourself. Your trading platform will help you to calculate the value and plot it into a graph.

So How Can You Use the Average True Range (ATR) Indicator?
Although this indicator cannot give you an indication of the direction of the market movement, it can be a good tool to help you verify the strength of the current market.

When the ATR indicator is showing small values, it is usually a sign that the market is consolidating or moving with small movement waiting for a breakout.

When you see the ATR indicator showing you large value, it is a sign that the market is trending strongly or you are in a valid breakout.

If you are a breakout trader, this indicator can be a great tool to add to your trading. When you see the ATR showing small values, you will wait for a breakout to occur. Once you see a trend line break together with rise in the ATR, this is a good sign of a breakout occurring.

Besides using the average true range indicator as a breakout tool, you can also use it in trend trading. When you are performing trend trading, you can use this ATR indicator to help you verify whether you are in a strong trending market or not.

atr acha indicator hai dear but os ma ak kami hai k wo advance work nahi krta hai matlb y k wo repeat hota rahta hai indicator wo ho jo repleat na ho or full version ho na trail version ho

Making money from forex trading is not as hard as what most people think but it is also not that easy. You will need to be patient and is willing to spend time to learn and practice what you have learned.

ahan , ATR Indicator , i am new in forex tu ap ke thread mein jo ap ne kaha he mujhe us ke bare mein knowledge nahin he , tawbi mujhe is bare mein pataw nahin he :)

bro yakeen karain is posts say pehlay tu mujhay ATR kai baray main bilkul khuch nahin pata tha but ap nay bata kar kafi help kar di hai main tu sirf aik hi indicator use karta hon aur wo hai oscillator I think jo sirf initial level kai logon kai liyay hain lakin ab main ATR ko use karnay ki koshish karon ga.

bro me as fourm me new hn as wja sy muje as bar me ni pta hey forex ek me acha busne kr sakty hen or yebusne bohet e acha hey

atr indicator ko main ny kabhi use nai kia ha kuinkay main zyada ter moving average and macd indicators use karta hon and in ko sue karna easy bhe hota hay and in say acha result mil jata hay so is laye main sub traders ko recommended karon ga kay wo bhe moving average and macd indicators hi sue kia karian

Yes dear MT4 mai bohats ay indicators hotay hai jinhay use krtay huway traders easily forex market ko understand kr sktay or signals ko diagnose krtay hwuay trading kr sktay hai.or meri knowledge k mutabik Moving Average or RSi (Relitive Strength Index) Best indicators hai jo k market ko smjnay mai kafi helpfull rhtay hai.