ATR MT4 Stock Indexes Indicator and ATR Indices Trading Signals
Developed by J. Welles Wilder
This MT4 Indices Indicator is a measure of volatility - it measures the range of stock indexes price movement for a particular stock indexes price period. The ATR is a directionless MT4 Stock Indexes Indicator and it does not determine the direction of the Indices trend.
High ATR values
High Average True Range values indicated market bottoms after a selloff.
Low ATR values
Low Average True Range values showed extended periods of sideways stock indexes price movement- Indices Price Range, such as those found at market tops and consolidation periods. Low ATR values are typical for the periods of sideways movement of long duration which happen at the top of the stock indexes trading market and during consolidation.
This MT4 Indices Indicator is calculated using the following:
- Difference between the current high and the current low
- Difference between the previous closing stock indexes price and the current high
- Difference between the previous closing stock indexes price and the current low
The final Average is calculated by adding these values and calculating the average.
MT4 Indices Technical Indicator and Generating Indices Trading Signals
Average True Range can be interpreted using the same principles as other volatility MT4 Stock Indexes Indicators.
Possible indices trend change signal - The higher the value of the MT4 Stock Indexes Indicator, the higher the probability of a indices trend change;
Measure of indices trend momentum - The lower the MT4 Stock Indexes Indicator’s value, the weaker the indices trend movement.
MT4 Stock Indexes Indicator