ATR Filter Indicator

ATR Filter Indicator

ATR Filter Indicator For MT4 uses a moving average to filter the bullish and bearish forex trading signals of the classic ATR indicator

The ATR filter indicator for MT4 provides buy and sell forex trading signals by adding a moving average filter on the classic ATR indicator. ATR – Average True Range indicator trading signals are based on the increase or decrease of the true range. However, by adding a moving average filter it improves the efficiency of the ATR signals.

The indicator works well for new and advanced forex traders. Furthermore, traders can plot the indicator on all intraday price charts and the daily, weekly and monthly charts. Traders can change the moving average calculation method in the input setting to their trading preferences.

ATR Filter Indicator For MT4 Trading Signals

The indicator plots a blue ATR line and red moving average line in a separate indicator window. The trading strategy is based on the crossover of the ATR and the moving average lines. An upward crossover of the ATR line indicates a bullish price trend, while the downward crossover indicates a bearish market trend.

Traders should consider entering the markets with a buy trade, if the ATR line crosses the moving average line upwards. A stop loss below the previous swing low will secure this position, while traders should consider booking profits upon an opposite trading signal.

Similarly, if ATR line crosses the moving average downwards traders should initiate a sell position. Traders should place a stop loss above the previous swing high and book profits at opposite trading signal.

The ATR – Average true range indicator and the moving average values can be derived to form automated trading strategies.

Conclusion
In summary, the ATR filter indicator for MT4 is an essential tool for ATR based forex traders for technical analysis and trading strategies.