The ATR indicator on MT4 and MT5 platforms is a powerful way to measure market volatility. Whether you’re using MetaTrader 4 or MetaTrader 5, this guide shows you how to apply the Average True Range (ATR) indicator step-by-step for better trade management.
Why Use ATR on MT4 or MT5?
ATR (Average True Range) helps traders:
- Measure volatility across any instrument
- Set dynamic stop-loss and take-profit levels
- Adapt strategies based on changing market conditions
On MetaTrader, ATR is built-in and easy to customize.
How to Add ATR on MT4
- Open MT4
- Go to
Insert>Indicators>Oscillators>Average True Range - Choose the period (default is 14)
- Click OK to apply it
ATR will appear in a separate window below your chart.
How to Add ATR on MT5
- Open MT5
- Click
Insert>Indicators>Oscillators>Average True Range - Adjust the settings (periods, color, line thickness)
- Click OK
The process is nearly identical to MT4, but MT5 offers additional customization and improved performance.
Customizing ATR Settings
| Setting | Recommendation |
|---|---|
| Period | 14 (default), adjust for strategy |
| Line Color | Choose visible color |
| Levels | Optional (e.g., 1.5, 2.5) |
You can also attach alerts using custom scripts or plugins to monitor ATR behavior.
How to Use ATR in Your Trades
1. Volatility Check
- If ATR is rising → market volatility is increasing
- If ATR is falling → market is stabilizing or consolidating
2. Stop-Loss Placement
Use ATR to set stop-loss:
iniCopyEditStop = Entry ± (ATR × multiplier)
Example: ATR = 1.5, Entry = 1.2000, Stop = 1.2000 ± (1.5 × 1)
3. Trade Filtering
Avoid trades when ATR is too low (flat market) or too high (news-driven spikes).
Bonus Tip: Custom ATR Indicators for MT4/MT5
MetaTrader supports custom indicators. You can find:
- ATR with stop-loss zones
- ATR breakout scanners
- ATR % (percentage of price)
You can download these from the MQL5 marketplace or forums like ForexFactory.
Final Thoughts
Using the ATR indicator on MT4 and MT5 helps traders manage risk and volatility with precision. It’s a core tool for building solid strategies, especially in fast-moving markets. Learn how it behaves, test different settings, and use it to refine your entries and exits.
FAQs
1. Is ATR available by default on MT4 and MT5?
Yes, both platforms include ATR in the standard indicator list.
2. What’s the best ATR setting for forex?
The 14-period setting works well, but you can experiment with 10 or 21 based on your style.
3. Can I get ATR alerts on MT4?
Yes, using custom indicators or EA scripts.
4. Is ATR better on MT5?
MT5 offers more speed and customization, but the core ATR function is the same.
5. Can I use ATR in automated trading strategies?
Absolutely. ATR values are accessible in Expert Advisors for automated stop-loss logic.