Two decisions separate this from the usual envelope. The atr channels indicator builds its centre from the average of the highs and the average of the lows rather than from closes, and it pushes each channel two and a half ranges out instead of two. Nothing else is drawn.
This build ships as a compiled .ex4 for MT4 and .ex5 for MT5; the screenshots below come from EURUSD H1.
| Platforms | MT4 (.ex4) + MT5 (.ex5) |
|---|---|
| Chart window | Main price chart |
| Plots | 3: Mid (HL/2 SMA), Upper channel, Lower channel |
| Alerts | popup, push notification, email, sound |
| Inputs | 9 |
Everything the ATR Channels Indicator draws
Three lines, and nothing else.
`Mid (HL/2 SMA)` traces silver at width 1.
`Upper channel` traces dark orange at width 2.
`Lower channel` traces dark orange beneath price.
No arrow plot exists in this build.
Nothing appears in a pane below.
- Mid (HL/2 SMA): line, silver, width 1
- Upper channel: line, dark orange, width 2
- Lower channel: line, dark orange, width 2
How the source computes it
A centre from both ends
`BasisPeriod` `20` averages the highs and averages the lows separately, then splits the difference. The centre therefore reflects where bars reached rather than only where they closed.
Channel distance
`AtrPeriod` `20` supplies the range figure and `Mult` `2.5` scales it. That is a wider setting than most envelopes carry, so price touches these channels less often.
What it leaves out
No arrow buffer exists here and nothing tests a crossing. The three lines are the entire output, which makes this a reading tool rather than a signalling one.
How to read the pane
The centre follows the middle of recent bars.
Channels widen when bars grow larger.
A touch is a touch, not a marked signal.
Two and a half ranges is deliberately wide.
Both channels stay symmetric about the centre.
Warm-up needs about forty bars.
Alert channels in this build: popup, push notification, email and sound.
`EnableAlerts` heads four message routes, with the terminal popup on already and the phone, mail and desktop ring behind `SoundFile` closed. Worth knowing before you lean on them: this build carries no arrow plot, so it flags nothing on the chart itself.
Every ATR Channels Indicator input
Core settings
| Setting | What it does | Default |
|---|---|---|
BasisPeriod |
Window behind the centre line, `20`. | 20 |
AtrPeriod |
Window behind the range figure, `20`. | 20 |
Mult |
Ranges each channel sits from centre, `2.5`. | 2.5 |
Alert settings
| Setting | What it does | Default |
|---|---|---|
EnableAlerts |
Master switch over the channel message, `true`. | on |
EnablePopup |
Terminal popup, on already, `true`. | on |
EnablePushNotify |
Phone push, `false`. | off |
EnableEmail |
Outgoing mail, `false`. | off |
EnableSound |
Desktop ring, `false`. | off |
SoundFile |
Ring file, `”alert.wav”`. | alert.wav |
Which chart earns the most from it
A wide channel needs a chart where price actually travels. EURUSD H1 is the reference chart, where a touch of either channel comes perhaps once a week. On M5 price rarely reaches them. On H4 a touch is a notable event.
Where care is needed
No arrow plot means you watch rather than wait.
A wide multiplier means very few touches.
Channels widen after volatility, never before.
A high and low centre lags a fast reversal.
Copy the compiled ATR Channels Indicator file into your MQL4/Indicators folder, and the MT5 build into MQL5/Indicators, then restart the terminal and drag it onto a chart. The step-by-step guide with screenshots is at how to install MT4 and MT5 indicators.
Background reading on the method behind the ATR Channels Indicator: Average true range on Wikipedia, Support and Resistance at StockCharts ChartSchool.
Download the ATR Channels Indicator for MT4 and MT5
The zip holds the compiled ATR Channels Indicator build for MT4 and MT5, plus a short README. Compiled files only, no source. Enter your email below and the download link arrives in your inbox.
Download this indicator free
Enter your email and the file is yours. You also get the full MT4 and MT5 library.
FAQ
Why does Mid (HL/2 SMA) average highs and lows?
Because the midpoint of recent bars describes the range price has been working in. A close-based centre ignores where bars actually reached, which on a wicky chart can put the whole envelope in the wrong place.
Why is Mult set to 2.5 rather than 2.0?
It pushes each channel half a range further out, so touches become genuinely uncommon. That suits a tool meant for judging whether price has travelled far rather than for firing on every excursion.
Does the Upper channel plot flag a touch?
No. There are three line plots and no arrow buffer at all, so a channel touch is something you see rather than something this tool marks for you. Pair it with a signal tool if you want marks.
How does BasisPeriod 20 differ from a close average?
It uses two separate averages, one over the highs and one over the lows, then takes the midpoint. On a session with long wicks that sits noticeably away from where a close average would put it.
Are results guaranteed?
No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the ATR Channels Indicator as one input. Always backtest before trading live.
Category: this is part of our Volatility collection. Then, browse more Volatility for MetaTrader, or explore every MT4 indicator and MT5 indicator on the site.
External references
- The core method is documented in Price Channels at StockCharts ChartSchool.
- Additional market context is at iatr (ATR) at the MQL5 Documentation.
About the author
Written by Dominic Walsh, a Forex trader and MT4/MT5 indicator, Expert Advisor and script developer. Every tool on forexmt4systems.com is tested on live charts before release and ships with ready-to-use compiled MT4 (.ex4) and MT5 (.ex5) files. Learn more about the trader and developer behind this site.
How we build, test and correct every tool: Editorial & Testing Policy. Trading carries risk; see the disclaimer.