Indicators: HVR

 

HVR:

An indicator of trend strength.

The ratio of the price of the current bar to the price of the previous bar is used as the initial data for the calculation.

Figure 1. The HVR indicator

Author: Nikolay Kositsin

 

Historical Volatility Ratio (source - esignal.com software)




The HVR is basically a mathematical ratio or percentage of a short to a long average historical volatility.

When a market's short volatility declines below a certain percentage of its long volatility, it is a heads up signal that an explosive move may be imminent.


The standard settings used are both the 10/100 and 6/100 HVR with a 50% ratio. The 50% ratio will be the trigger point. If either the 10/100 OR the 6/100 declines below 50% in any market, that market should be watched for potential trades, as a sharp move could be seen. Both the 10/100 and the 6/100 HVR indicators are included in this package.