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There are plenty of ways to use the ATR indicator on the MT4 trading platform. However, today we will be highlighting the main points that can be the most advantageous for beginner FX traders.
The ATR is commonly used to assist day traders to identify signals, prior to entering a trade. You could also use it to determine the placement of a stop loss or take profit order.
Before we dive into how to do that, however, let’s have a quick look at a few main features.
What is the Average True Range?
The ATR indicator was developed by J. Welles Wilder, the architect behind several technical indicators such as the Relative Strength Index (RSI), the Average Directional Index, and the Parabolic SAR.
The Average True Indicator (ATR) measures volatility and shows how much an asset has moved during a given time span (in pip terms).
As we know, volatility can be a driving force when trading an asset. Therefore, the assistance of the ATR can provide realistic possibilities with achieving trading targ...
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