ATR Ratio - MetaTrader 5 Script | Trading Script Download - MT4/MT5 Resources - MetaTrader 5 Resources

Luis Guilherme Damiani

The fast and slow ratio indicators are average true range (ATR) and slow ATR.

The ATR ratio usually reaches high values ​​after rapid and strong price movements. Lower indicator values ​​generally correspond to longer-term flattening observed at market tops and during consolidation. It can be interpreted according to the same rules as other volatility indicators. The method of forecasting using the ATR ratio is as follows: the higher the indicator value, the higher the probability of a trend change; the lower the value, the weaker the trend movement. If the indicator value climbs above the blue horizontal line, it indicates time to buy or sell.

High ATR ratio price levels are often associated with high volatility. Low ATR ratio prices are associated with low volatility, as prices stabilize or move flat along the channel until a possible breakout point.

This indicator does not provide a sufficient number of signals by itself and must be used in conjunction with other indicators. Volatility movements occur in the direction of the trend. Like moving average systems, volatility systems in trending markets don't play well during sideways periods.

The indicator was first implemented in MQL4 and published in the code base of mql4.com on August 8, 2006.

Attachment download

📎 atrratio.mq5 (6.37 KB)

Source: MQL5 #495