MA ATR Indicator For MT4
Table Of Contents:
- MA ATR Indicator For MT4
- Trading ideas with the MA ATR Indicator For MT4
- MA ATR Indicator For MT4 - Buy Entries
- MA ATR Indicator For MT4 - Sell Entries
- MA ATR Indicator For MT4 - Conclusion
The MA ATR Indicator For MT4 is more like a complicated Bollinger band for the retail traders. There are two upper bands and two lower bands. The extreme upper bands limits the spikes and allows the traders to find the perfect selling point. Just like this lower band offers perfect buying opportunity. On the contrary the mid band acts like the profit taking level for the retail traders.
The MA ATR Indicator For MT4 is based on the formula of the ATR and the moving average. This indicator creates a simple channel-like structure based on multiple bands. The band acts more like the Bollinger band which provides us dynamic support and resistance level.
The mid-band or the black colored line works as the prime moving average which shows the direction of the trend. The first later of support and resistance is showed by the dashed green and red lines. The outmost line is acting as the second layer of support and resistance. Based on the momentum of the price, the price momentum takes place right inside the channel.
Just by seeing the slope of the channel, anyone can predict the direction of the trend. For instance, when the price is rallying higher, you will be seeing a strong positive slope in the indicator channel. On the contrary, when the price is falling at a fast pace, you will see the channel has a diving nose.
By seeing the different structural format of the channel, the traders can take their trades very easily. But to secure decent results while using the MA-ATR – indicator, the trader must depend on a professional trading edge or else they will lose most of their trades.
Trading ideas with the MA ATR Indicator For MT4
Any person who wants to become successful at Forex trading must create a trading system. Being a new participant in the industry, you can develop your trading edge in the demo environment. The demo account will give you the perfect place to create and deploy a new trading method.
As you gain basic knowledge about the trading profession, you should slowly start to use the MA-ATR – indicator. The support and resistance levels noted by your trading edge must match with the dynamic bands of the MA-ATR – indicator. For instance, the support level should merge with the green-colored line of the indicator.
If you fail to get matching support or resistance level, you probably have the wrong signal in the chart. In some cases, you need to revise your trading strategy from the start just to get a better grip on this market. Never aggressively take your trading approach because if you do so, you are not going to succeed in the long run. Know the proper use of the MA-ATR – indicator so that you can take better decisions without having much trouble with the system.
MA ATR Indicator For MT4 - Buy Entries
Taking some bold decisions in the support zone requires patience and control over emotions. Knowing about the use of the MA ATR Indicator is not going to protect you from losing trades. To do better, you have to act better and outperform the functions of the EAs. This means, your system should have the ability to determine the buying zone with precision.
Analyzing the chart, looking for the potential breakout pattern, and managing the risk factor should be done in a synchronized way. As you spot the potential buying signal on the chart, your job is to take the reading from the MA ATR Indicator. The bullish price action signal must be formed in between the green solid and dashed lines. In case, you see a big gap between the support line and the indicator dynamic level, you are doing something wrong.
The mismatch between the support zone indicated by the trading edge and the MA ATR Indicator tells us not to take any trade. The long trade should be taken only if you are certain the price is respecting the dynamic levels of the MA ATR Indicator. And when you take the long trade, evaluate the risk factor in every possible way so that you don’t have to lose too much money.
MA ATR Indicator For MT4 - Sell Entries
The red dashed or the solid lines of the MA ATR Indicator work as the selling zone for the retail traders. The trading system which is used to determine the selling levels in the chart must locate the short trade setups or the signals in the red zones drawn by the MA ATR Indicator.
Being an intellectual trader, you should also locate the selling signal in a downtrend. To confirm the downtrend, you have to analyze the slope of the MA ATR Indicator. The channel will be showing a downshift in the momentum and the black color MA should have a negative slope. Once you are confirmed the short trade setup is perfect, TP and SL levels should be analyzed.
The minimum risk to reward ratio for the trades should be higher than 1:3 or else it won’t be an easy path to succeed at trading. By choosing a higher risk to reward ratio in the trades, you are letting yourself take the trades in a less risky environment. Though the higher risk to reward ratio trade setups require a higher time frame, it is worth analyzing the higher time frame data.
MA ATR Indicator For MT4 - Conclusion
The success of any trading method depends on the functions of the edge and investors' analytical ability. You may have mastered the use of the MA ATR Indicator but failing to adhere to the core rules of money management will bring devastating results to your trading business. People usually find it hard to take the trades in a higher time frame.
Open a paper trading account and you will notice the results generated from the higher time frame trading edge is much more efficient. Regarding the news, be aware of it. Intense economic news can alter the direction of the black colored MA. The spikes which you have often seen in the MA ATR Indicator outer zone is the result of the intense news release. Without having yourself connected to the economic news events, it becomes a tough challenge to make money as a trader.
Spend some time and learn about the essential factors of the market from the start. This should slowly help you to build a professional edge and make your trading process smoother. Regarding the sudden losses from the trades, you must accept those anomalies. Always staying alert and prepared to accept the losses should be the trait of a professional trader.