A line showing how much price moves on average per candlestick. It tells you how "rough" the market is, not which way it's going.
The bigger it is, the rougher the moves. Your profit/loss swings more, even with the same lot size
A sign the market is rough from data releases or news
Many traders set their stop loss at 1–2 times the ATR
Technical indicators are calculated from past price moves, so they react a little late and can be wrong (false signals). The basic rule is not to decide from just one.
ATR ties directly into your lot size. For example, if you want to lose no more than $250 per trade, choose the lot size where your stop loss distance (such as 1.5× ATR) equals $250. On rough days your lot size gets smaller automatically, so even on data release days you are less likely to break the daily loss line in one trade.
These are real screens from the Android MT5 app.Swipe sideways, or use the button below to go next
Tap the wavy-line icon (Indicators / インディケータ) at the top of the chart screen
Tap "f+" to the right of Main chart (メインチャート). (Indicators shown in the lower window open in a separate window automatically)
Tap "Average True Range" in the list
Enter the numbers and tap Save (保存) at the top right
In the top menu, click Insert (挿入) → Indicators (インディケータ) → Oscillators → Average True Range
When the settings window (Parameters / パラメータ) opens, enter the numbers below
Tap OK to finish. You can also drag it onto the chart from the Navigator (ナビゲーター) on the left
14
Shown in a separate window below the chart
The current value shown at the top right
ATR is a "price range." For USD/JPY, read 0.30 as 30 sen. For the steps, see the official help from MT5's developer (iPhone · Android · PC). Menu names may appear in English depending on your language settings.
Tips for not failing on the loss rules are in the illustrated rulebook.
Add us on LINE to get the rulebook and getting-started guide for free. We also hold a free Zoom intro session for beginners every Friday from 22:00
Common settings are general guides. How to show them depends on the chart software.