ATR's Average True Range
What is ATR?
Average True Range (ATR) is a technical indicator that calculates the market volatility. ATR is not a directional indicator, such as MACD or RSI. Instead, ATR is a unique volatility indicator that reflects the degree of interest or disinterest in a move. Strong moves, in either direction, are often accompanied by large ranges, or large True Ranges. This is especially true at the beginning of a move. Uninspiring moves can be accompanied by relatively narrow ranges. As such, ATR can be used to validate the enthusiasm behind a move or breakout. More here:
ProAct Traders use the ATR daily
For example: it is the start of the London session and we are looking to trade the GBPUSD which has an ATR of 126 pips. The move is ahead of us so this becomes part of the criteria for entering. But, if it is at the end of the New York session and the pair has moved 102 pips already, we pass on the trade even though everything may look perfect.
Fast Trackers have their own private script for MT4. Here is one for the rest of you.
Easy Indicators for your smart phone ATR on your phone
Here is a MT4 Ea for the ATR- install in the correct directory