The ATR Trend Channel indicator for MetaTrader 5 tries to encapsulate the price within 6 bands, determined by the ATR (average true range) indicator and its relationship with the SMA (simple moving average).
On the chart, it might look similar to the Guppy indicator.
The 2 middle lines are determined by the ATR*multiplier, the seconds up/down are determined by the ATR*multiplier plus the high/low SMA and the outer channel lines are the 2*ATR*multiplier + SMA (High or Low depending on the whether there is the upper band or the lower one).
One trading strategy idea using this ATR indicator is to focus on entering a trade when the price reverses while continuing with the trading, after crossing at least the middle bands. If the price pokes through the opposite outer band – for example if there is a downtrend and the price swings higher then the upper band – a change of trend might happen, and the trader should trade with caution or wait for the new trend to form.
The settings are simple, with only two main options – ATR (which is also the SMA period) and ATR multiplier, plus the settings for the band moving averages colors.