Variativity
- Indicatori
- Maxim Kuznetsov
- Versione: 1.0
- Attivazioni: 5
The indicator evaluates the degree of price variability and identifies the components leading to growth and fall. Using Variability, you can determine the places where the movement changes, successful moments for trading on the trend or against the trend. Accompany open transactions.
DISPLAY
The indicator displays 3 lines:
VARIABILITY - a thin gray line. Total price variability. The growth of the line indicates an increase in market activity. The decline shows the possibility of counter-trend trading. A significant drop to small values indicates a high probability of a trend reversal.
UP - the blue line. The share of changes leading to an increase in the exchange rate. The beginning of UP growth from small values, while reducing the overall variability, can serve as a signal for purchases.
DN - the fraction leading to a decrease. The share of changes leading to a decrease in the exchange rate.
The intersection of the UP and DN lines can also be used as an input signal.
USING
Trending trading
Trend trading is performed at the beginning of the growth of the VARIABILITY line from small values. The direction is chosen based on the predominantly growing UP or DN
Countertrend trading
Counter-trend trading is performed when the VARIABILITY line decreases and the UP or DN begins to grow from small values
Transaction support
It is recommended to carry out stop order trawls only when the overall volatility drops
Trend and sideways movement
A significant drop in VARIABILITY to the lows only precedes a possible trend change and may indicate the beginning of a sideways movement.
There is little variability in the lateral movement and it can persist for a long time.
Other recommendations
It is recommended to use the indicator in conjunction with range indicators (for example, ATR) and a trading schedule
SETTINGS
Take into account the specifics of the instrument when choosing a timeframe. For metals, it is recommended to use large timeframes H4,D1
I wish you good luck !
The source code can be provided to the final buyer for review