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Change of Volatility

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OVERVIEW
The Change of Volatility indicator is a technical indicator that gauges the amount of volatility currently present in the market. The purpose of this indicator is to filter out with-trend signals during ranging/non-trending/consolidating conditions.


CONCEPTS
This indicator assists traders in capitalizing on the assumption that trends are more likely to start during periods of high volatility compared to periods of low volatility . This is because high volatility indicates that there are bigger players currently in the market, which is necessary to begin a sustained trending move.

So, to determine whether the current volatility in the market is low, the indicator will grey out all the areas on the chart whose short term standard deviation of volatility is lower than the long term standard deviation of volatility.

If the short term standard deviation of volatility is above the long term standard deviation of volatility, the current volatility in the market is considered high. This would the ideal time to enter a trending trade due to the assumption that trends are more likely to start during these high-volatility periods.


HOW DO I READ THIS INDICATOR
When the histogram is grey, don't take any trend trades since the current volatility is less than the usual volatility experienced in the market.

When the histogram is green, take all valid with-trend trades since the current volatility is greater than the usual volatility experienced in the market.
發布通知
Added multi-timeframe functionality
Added bar-coloring functionality
deadzonefilternnfxrangerangefiltertrendTrend AnalysistrendtradingVolatilityVolume

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