The above GBPJPY H1 chart shows the ATR Trailing stop Indicator in action. The indicator displays the trailing stop levels above the current price in RED color for SELL positions. On the other hand, the indicator places the stop levels below the price in BLUE color for BUY positions.
Many traders use the Average True Range to identify the trend and follow the trend until the opposite trend emerges. For example, the trader in a BUY position will continue to hold the position until the Average True Range Trailing Stop Loss MT4 indicator changes to RED color. In this case, the forex trader will be able to ride the trend until the end.
Traders use the ATR Trailing Stop Loss indicador to find entry points and exit points as the ATR are the best calculator of volatility. Forex traders tend to BUY once the indicator changes to BLUE color. Oppositely, they SELL as the indicator changes to RED color. However, it is recommended to combine the signals with other technical indicators and price action to confirm the entry points.
New forex traders will highly appreciate this indicator as it provides a snapshot of market volatility. Also, the ATR Trailing Stop Indicator for MT4 provides them with the best stop loss point. Experienced forex traders use this indicator to identify trailing stops, trend direction, entry and exit points, combine them with other technical strategies, and use the multiplier to find the best indicator settings.
