What indicator or method can be used to limit or stop trades during high volatility.

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I am working on an EA that has some success, but also has failures during volatility. 

For example:
if 5M MACD down to sell. However, volatility and candles are actually going up quickly.
So we get multiple selling and s/l's hit because 5M MACD is delayed with the move and isn't actually up but is down. 

I don't know if it was because of news release or sentiment change but there is a spike. 

So I'm not sure what indicator might avoid this or how to limit the trades during this short time.
I'm thinking of maybe a small SMA or something that might conflict with the direction of the 5M and could help limit this somewhat.

OR even use 1M MACD to create a conflict and NOT trade if 1M MACD is up. However, I would want to turn this back off again once these quick spikes occur. 

I'm really just not sure what indicator or method people might consider when making trade decisions like this. 
I know if I were watching the charts I would not have sold because I clearly see that the candles are spiking up quickly and that MACD is just wrong thing to trade at that time. 

Anyhow any ideas about what indicator might be good to experiment with or what method you may have used to solve this subject would be great

Thanks

 
Agent86:

I am working on an EA that has some success...

This is indeed an important issue to ponder, while we do need volatility to make pips, too much of it leads to losses. The best indicator I think for this job is Hawkeye Wide Bar, and according to hawkeye, when a bar is marked as a wide bar, it's better to stay out of the market until price closes above or below that candle. The formula they use is really simple; if a bars range is  two times greater than the average range of the last 10 bars; easy to code, some pseudo code below.

range[i]= (high[i]-low[i]);
double arange = iMAOnArray(range,0,10,0,MODE_SMA,i);

if(range[i]>(2*arange)) bar is wide bar;


 
Paul Carissimo:

This is indeed an important issue to ponder, while we do need volatility to make pips, too much of it leads to losses. The best indicator I think for this job is Hawkeye Wide Bar, and according to hawkeye, when a bar is marked as a wide bar, it's better to stay out of the market until price closes above or below that candle. The formula they use is really simple; if a bars range is  two times greater than the average range of the last 10 bars; easy to code, some pseudo code below.


Thanks that makes sense I will try it. 
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