ATRTrendChannel

For MetaTrader 5 · Main chart window indicator

Overview

• Trend direction​ — only the upper band (green) is shown during an uptrend; only the lower band (red) during a downtrend.
• Flip trigger level​ — a dashed projection extending to the right of the latest bar, showing the price that would trigger a trend flip.
• Trend strength​ — candles are colored by the close position inside the channel; the closer the price is to the trend-side band, the more the color shifts toward the trend color.

Key Features

1. ATR-adaptive channel​ — the channel width scales with volatility, so the same settings can be used across instruments with very different price ranges.
2. Stepped anchoring and flips​ — a close above the upper band is a bullish flip, a close below the lower band is a bearish flip; the channel is re-anchored to the current bar only on a flip.
3. Inner buffer bands​ — gray dashed inner bands are drawn inside the visible band; their offset equals half of the average range of the last 50 bars, helping to separate a normal pullback from a weakening trend.
4. Gradient candles​ — in an uptrend, the closer the close is to the upper band, the more bullish the candle color; in a downtrend, the closer the close is to the lower band, the more bearish the color; mid-channel candles fade into the transition color.
5. Flip arrows​ — an up arrow below the bar marks a bullish flip, a down arrow above the bar marks a bearish flip; both can be switched off.
6. Last-bar projection​ — a dashed line extending about 10 bars to the right of the latest bar, together with a text label showing the exact flip trigger price.
7. Status table​ — a compact table in the lower-right corner showing the current trend direction (UP / DOWN) and the latest price.
8. Fully configurable​ — ATR period, ATR multiplier, three colors and three display switches.

Chart Elements at a Glance

How It Works (Plain Description)

1. The median price of each bar, (high + low) / 2 , is used as the channel reference base.
2. A distance of ATR × multiplier is applied upward and downward to obtain the upper and lower bands.
3. The channel stays anchored to one bar and is re-anchored to the current bar only when the close breaks out of a band​ — this is a flip.
4. On every flip, the buffer-band offset is recalculated from the average range of the last 50 bars.
5. Candles are colored according to the relative position of the close between the lower band (0) and the upper band (1), producing the gradient.

Input Parameters

=== Channel Settings ===

=== Colors ===

Note: these color parameters affect the gradient candles, the projection line and the status table. The color of the channel lines and arrows can be changed separately in the chart's Colors​ tab.

=== Display ===

Suggested Settings

How to Use It

• Define the direction​ — use a channel flip as the trend-direction switch: during an uptrend, plan only long-side trades; during a downtrend, plan only short-side trades.
• Reference targets​ — the upper band during an uptrend and the lower band during a downtrend can serve as a first target area for the trend move.
• Reference risk levels​ — during an uptrend, the projected lower band to the right of the latest bar is the bearish-flip level; if price reaches it, the trend structure has changed, which can be used as an exit or reduction reference.
• Filter noise​ — pullbacks that stay inside the inner buffer band are normal within a trend; attention is warranted when price enters the buffer zone and approaches the flip level.
• Detect ranging markets​ — frequent flip arrows over a short period usually mean the market is in a range, where channel signals are less reliable.
• Multi-timeframe use​ — a common approach is to define the main direction on a higher timeframe (H4, D1) and use the channel on a lower timeframe (M15, H1) to time entries and exits.

Instruments and Timeframes

• Instruments: currency pairs, precious metals, energies, index and commodity CFDs, cryptocurrency CFDs — any instrument available in MetaTrader 5.
• Timeframes: all timeframes (M1 to MN). The default settings (ATR 100 / multiplier 2.5) suit H1 and above; for lower timeframes, reduce the ATR period accordingly.

Installation and Usage

1. After obtaining the indicator from the Market, MetaTrader 5 installs it into the MQL5/Indicators folder automatically; you can also copy the file manually and refresh the Navigator.
2. Find ATR Trend Channel​ under Navigator → Indicators and double-click it or drag it onto the chart.
3. Set the ATR period, ATR multiplier and colors in the Inputs​ tab.
4. To see the original candles, set the Candles plot to None in the Colors​ tab; the channel line and arrow colors are adjusted in the same tab.
5. You can load the indicator several times with different settings on the same or different charts — each instance keeps its own parameters.

Notes

• The indicator provides visualization of trend and volatility structure only. It is not a complete trading system and contains no automated trading functions. Always apply your own risk management and make your own trading decisions.
• Arrows, colors and the projection level on the latest, still-forming bar update as price moves and are fixed only when the bar closes.​ Everything on closed bars remains unchanged.
• The chart needs at least ATR period + 50 bars​ before the indicator starts drawing, so please allow enough history.
• The default ATR period of 100 produces very few flips on M1–M15; lower the parameter for short timeframes.
• The indicator redraws candles on the main chart with gradient colors. This is a display effect only and does not affect the underlying price data.
• After switching off the projection or table display, reload the indicator to remove the objects already drawn.

Risk Disclaimer