ATR Indicator Setup Guide for MT4 and MT5 Users
The ATR indicator is built into both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, widely used in forex and CFD trading. This step-by-step guide shows how to add the ATR indicator in MT4/MT5, adjust its settings, and use it to manage your trades based on volatility.
Step 1: Open Your MetaTrader Platform
- Launch MT4 or MT5 on your desktop
- Open any chart (e.g., EURUSD, GBPJPY, Gold, etc.)
- Select your preferred timeframe (M1 to Daily)
Step 2: Add the ATR Indicator
- In the Navigator panel, expand the Indicators folder
- Locate the Average True Range under Trend indicators
- Drag and drop it onto your chart, or
- Right-click > Attach to Chart
You’ll see the ATR line appear below your price chart.
Step 3: Configure ATR Settings
A dialog box appears after adding ATR:
- Period (default: 14)
- Use 10 for quicker signals or 21 for smoother readings
- Apply to: Leave it as Close
- Choose your line color and thickness under the “Colors” tab
- Click OK
You can also adjust settings later by right-clicking on the ATR and selecting Properties.
Step 4: Read the ATR on MT4/MT5
The ATR line helps you measure recent price movement range:
- A high ATR value = higher volatility
- A low ATR value = quieter market
You can use the current ATR value to:
- Set volatility-based stop-losses
- Determine take-profit levels
- Decide if the market is worth trading
For example, if the ATR on GBPJPY (H1 chart) is 30 pips, you might:
- Use a 45-pip stop-loss (1.5 × ATR)
- Set a 60-pip target (2 × ATR)
Step 5: Use ATR in Your Strategy
Combine ATR with:
ATR helps optimize risk-to-reward ratios and adapts to different market conditions.
Bonus Tip: Install Custom ATR Tools
MT4/MT5 users can also install:
- ATR-based trailing stop EAs
- Multi-timeframe ATR indicators
- ATR volatility dashboards
These tools are available on the MetaTrader Market or third-party sites.
Conclusion
Adding and using the ATR indicator in MT4 and MT5 is simple and effective. With a few steps, you can track market volatility and improve your stop placement, trade size, and timing. For forex and CFD traders, ATR is a must-have tool built right into the platform.
✅ FAQs
1. Is the ATR indicator built into MT4 and MT5?
Yes, it’s included by default under the “Trend” indicators section.
2. Can I change the ATR period in MT4 or MT5?
Yes, right-click the indicator and choose “Properties” to adjust the period.
3. What’s a good ATR period for forex trading on MT4/MT5?
ATR 14 is standard, but you can try 10 for short-term or 21 for long-term trading.
4. Does ATR work for all currency pairs?
Yes, it works on all forex pairs and even metals and indices.
5. Can I automate trades using ATR in MT4/MT5?
Yes, by using Expert Advisors (EAs) that use ATR for stop-loss or position sizing.
