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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.

Average True Range (ATR) Technical MT4 Stock Indexes Indicator

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.


Calculation


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 Indices Indicator Average True Range (ATR)- Sell and Buy Indices Trading Signals

MT4 Stock Indexes Indicator

 

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