Forex NRTR ATR STOP Indicator: The Ultimate Guide
The NRTR ATR STOP indicator is a powerful tool for Forex traders looking to enhance their trading strategies. This custom indicator provides dynamic support and resistance levels based on price volatility, allowing traders to better time entries, set stop losses, and ride trends.
In this comprehensive guide, we will cover everything you need to know about using the NRTR ATR STOP indicator for profitable Forex trading, including:
What is the NRTR ATR STOP Indicator?
The NRTR ATR STOP indicator was developed by Konstantin Kopyrkin and provides a dynamic price channel based on the Average True Range (ATR). It sets support and resistance levels a certain distance away from price, with the distance determined by a percentage of the ATR.
- Sets dynamic support and resistance levels based on volatility (ATR)
- Levels trail price at a defined ATR distance
- Resets support and resistance on trend changes
- Works on all timeframes and currency pairs
By accounting for volatility, the NRTR ATR STOP provides more accurate support and resistance over traditional fixed levels. This allows traders to time entries near support/resistance as well as set better stop losses.
How the Indicator Works
The NRTR ATR STOP indicator works by first calculating the Average True Range (ATR) of price. The ATR measures how much, on average, price moves per day by taking the greatest of the following:
- Current high to current low
- Current high to previous close
- Current low to previous close
A period setting (typically 14) is used for the ATR calculation. Next, the indicator plots dynamic support and resistance lines a certain ATR percentage away from price.
For example, if support is set at 5% ATR below price, then a 20 pip ATR would place support 100 pips below price (20 * 5%). These levels trail price at the defined ATR distance.
The indicator resets support and resistance on trend changes. So in an uptrend, resistance trails price while support remains fixed. The opposite occurs in downtrends.
Using the NRTR ATR STOP Indicator
The NRTR ATR STOP indicator can be used to time entries on retracements, set stop losses, and trail trends. Here are some tips:
Place stops just outside the NRTR channel, above resistance on longs and below support on shorts. This accounts for volatility in the stop loss.
As price trends in your favor, trail stops along the NRTR channel. For example, in an uptrend trail stops under support. This locks in profits while allowing room for volatility.
Always use sound risk management with the NRTR ATR STOP indicator. Size positions appropriately and use stops to limit losses.
NRTR ATR STOP Indicator Settings
The main settings for the NRTR ATR STOP indicator include:
ATR Period: The period used in ATR calculation, typically 14. Lower for shorter-term trading. ATR Multiplier: How many multiples of ATR for setting levels. Higher values give wider stops but more room for volatility. Upper/Lower Level: Percentage of ATR to use for resistance and support. For example, 5% ATR.
Experiment to find the best performing settings for your trading style and the currency pairs you trade. More volatile pairs may need wider stops.
Tips for Trading with NRTR ATR STOP
Here are some additional tips for getting the most out of the NRTR ATR STOP indicator:
- Trade in the direction of the larger trend for best results
- Use on higher timeframes (4H, daily) for more reliable signals
- Combine with trend-following indicators like moving averages for confirmation
- Be patient with trades; wait for clear signals before entering
- Adjust settings based on historical testing for optimal performance
With the right approach, the NRTR ATR STOP can significantly improve trading outcomes. But always remember to use sound analysis and risk management.
Example of NRTR ATR STOP Indicator
Below is an example of the NRTR ATR STOP indicator in action on the EUR/USD daily chart:
NRTR ATR STOP Chart Example
In this example, the indicator is set to 5% ATR for support and resistance. Looking left, we can see prices respecting support and resistance levels repeatedly.
When price breaks support and closes below in late February 2020, this signals a change to a downtrend. Support then flips to become resistance per the indicator rules. The new support trails price by 5% ATR.
Zooming in on the right, we see the NRTR STOP indicator for MT4 providing quality support and resistance levels during the downtrend. These allow traders to time entries on retracements back to levels.
The NRTR ATR STOP indicator provides dynamic support and resistance designed to improve timing and risk management. By accounting for volatility, it gives traders an edge across all market conditions.
Use the guidelines in this guide to effectively apply the indicator to your own trading. With the proper settings and analysis, NRTR ATR STOP can take your trading to the next level.