An MT4 indicator, the ATR Levels Indiator plots support levels and resistance levels in order to determine the trend’s direction. Traditional Average True Range Indicator uses a moving average to draw a line below the main window. For the direction of the trend, it draws on two levels of resistance and support.
The ATR (y) is the upper resistance level, while ATR(t) is the lower resistance level. The ATR is the support level at the top, while ATR is the support level at the bottom. ATR is the support level that is closest to the ground. Because it is more sensitive to short timeframes than shorter ones, the Indicator can give false signals.
The ATR Levels indicator BUY/SELL signals
Traders must identify the support and resistance levels to determine if they are buying or selling signals. If the price rises above these resistance levels it is a sign of a strong downtrend. Here traders have the option to either enter or exit short positions.
If the price is near the support level, traders should enter early. Trader must wait until the price action continues upwards or downwards before they can take position. Traders may also use the Indicator in conjunction with the MACD or RSI for additional signal confirmation.
To show which direction the trend is heading, the ATR Levels indicator draws support and resistance levels. These levels allow traders to enter either long or short trades. You can also download our ATR Levels Indicator free of charge from this website.